Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: MrSpasybo on July 15, 2021, 07:30:32 PM
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An event that is on every Bitcoin market participant’s radar this month is the multiple unlockings of BTC at institutional giant Grayscale.
As Cointelegraph explained, the Grayscale Bitcoin Fund (GBTC) is due to release in excess of 40,000 BTC in the coming weeks, this having been subject to a six-month lock-up period.
Opinions differ about its market impact. Some are concerned that selling pressure will increase (only to then become practically zero after the unlockings are over), while others argue that spot markets will be broadly unaffected.
Sunday, July 18, is of particular interest, with that day’s unlocking worth just over 16,000 BTC.
“When GBTC shares unlock and get sold, the GBTC Premium drops (share price drops relative to the BTC in the trust),” statistician Willy Woo commented last week.
Source: Countdown to Grayscale’s big BTC unlock: 5 things to watch in Bitcoin this week (https://cointelegraph.com/news/countdown-to-grayscale-s-big-btc-unlock-5-things-to-watch-in-bitcoin-this-week)
On July 18, a large amount of GBTC will be unlocked, and according to many experts, this will have a negative impact on the crypto market.
Many people say that investors can only sell GBTC but can't actually sell BTC, and this has no negative impact on BTC price. However, if GBTC price drops, BTC price will be seen as too high compared to GBTC price and the BTC price will also tend to decrease, at least not growing.
And when BTC price is contained, we will probably see a serious drop in altcoins price, although the DeFi & NFT wave is gradually returning, because most of them are small cap tokens, easily be manipulated by whales.
I believe this is the reason for BTC price to drop below $28K, and hit the Spring point in Wyckoff's model. I am holding USDT and placing orders to buy more Altcoins at very low price.
What do you think about the impact of GBTC unlocking event on the crypto market? Are you planning to DCA in the next week?
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Grayscale's CEO has stated many times that they are not shorters rathers buyers and accumulators of botcoin so this fud is useless and im sure it will infact be positive for the market, it is just big whales and media outlets trying to fud so that ordinary investors sell to them cheaply.
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Despite what Grayscale's CEO has reiterated, the owners of the bitcoins are businessmen and are attracted to where the money is. They would want to reinvest the bitcoin and so there would be a selling pressure
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I also think the BTC price will drop after the GBTC unlocking event, and the price of many Altcoins will drop accordingly. However, DeFi & NFT will still show strong growth as this is an area that many investors are interested in and participate in right now to seek high returns.
I'll probably buy some NFT & DeFi tokens that haven't gone up yet when the BTC price drops below 30K USD.