- In the coming weeks, Grayscale is set to unlock part of its Bitcoin Trust, with holders able to sell their shares, there’s been divided sentiment what effect this will have on Bitcoin prices.
- While JPMorgan’s research revealed that this could be the single reason to drive prices to $25,000, Kraken Intelligence disputes this claim.
Kraken Intelligence research has disputed an earlier cast by JPMorgan. Late last month, JPMorgan strategists led by Nikolaos Panigirtzoglou cast a gloomy prediction over Bitcoin prices in July. The analysts noted that Bitcoin was likely to dive to the $25,000 levels citing the upcoming GBTC unlocking. But Kraken Intelligence has refuted this claim. According to the Kraken researchers, the unlocking “will not weigh materially on BTC spot markets anytime soon, if at all.”
Grayscale is one of the largest Bitcoin holding institutions and the world’s largest digital asset fund. With more than 654,600 BTC, the firm holds roughly 3 percent of the total supply. Its popularity was at its peak earlier in the year when Bitcoin prices reached an all-time high of $64,000. At these highs, institutions and retailers alike were flocking to Bitcoin. Especially with institutions that prefer not to hold digital assets, the fund was a popular option. One characteristic of the funds is that there are periodically locked, in this instance, for 6 months. Only after this period expires, can the GBTC holders sell their shares.
The unlocking is set for later this month and given the level of popularity 6 months ago, the upcoming event (between 16,000-40,000 BTC unlocking) is set to be the biggest one yet. So far, analysts are divided on the effect it will have on Bitcoin. JPMorgan says that this could send the already sensitive Bitcoin over the edge. The freefall according to the financial giant will see Bitcoin reach $25,000.
Read More: JPMorgan strategists expects Bitcoin to reach $25,000 following Grayscale GBTC shares unlocking
Kraken Intelligence expects no price change
Kraken Intelligence whose own data shows that the total GBTC shares that will be unlocked are close to 40,000 BTC say that the event will not have an immediate effect on Bitcoin prices. At an average price of $34,000, the 40,000 BTC to be unlocked is worth roughly $1.36 billion.
The researchers wrote:
Despite 40K BTC worth of GBTC shares unlocking in July, market structure suggests that the unlock will not weigh materially on BTC spot markets anytime soon, if at all, like some have claimed,
The unlocking is untimely as Bitcoin is showing signs of volatility. But so far, Bitcoin has shown solid support at the $30,000 but the unlocking good be its greatest test yet.
Going into the weekend, the digital asset is exchanging for near $33,000 according to our data. For the last few weeks, the asset has largely been moving sideways with investors undecided on the next move.
Der Beitrag Analysts divided on the direction BTC takes after GBTC “unlocks” later this month erschien zuerst auf Crypto News Flash.
