price Bitcoin surge this week, a touching best Not seen since the 2021 bull market. But will it last?
In the news fell A U.S. bankruptcy judge has reportedly granted bankrupt cryptocurrency lender Genesis permission to sell $1.6 billion in Grayscale Bitcoin Trust (GBTC) stock. The idea is to repay creditors who have been waiting for cash since the lender went bankrupt.
Just last month, under pressure from Grayscale, Huge amount of whipping. To Coinbase, the custodian of the cryptocurrency led to a sharp decline With BTC price.
So it’s natural to wonder if the same thing will happen again when the Genesis finally sells.
First, some background information: Genesis is a subsidiary of Digital Currency Group (DCG), which allowed people to earn interest on their cryptocurrencies.
that contaminated A year ago, the bankruptcy revealed its exposure. folded Cryptocurrency venture fund Three Arrows Capital. After the cryptocurrency mega brand FTX went bankrupt Eventually, Genesis in 2022 freeze Customer withdrawal.
Creditors are still waiting for the cash they parked in the goods. DCG said creditors would be made whole.
The plan approved by a judge this week would allow creditors to be repaid.
But experts don’t think the Bitcoin price will take that much of a hit. reason? Strong interest in newly approved cash exchange-traded funds (ETFs).
Bloomberg ETF expert Eric Balchunas said: decryption Despite the potential negative impact of the Genesis sell-off, the ETF could “show off some real muscle” and prevent a massive sell-off in BTC.
In January, 10 years after rejecting a spot Bitcoin ETF, the Securities and Exchange Commission Approved 10 products. They began trading on January 11, huge successGather billions of dollars in assets under management.
“The level of liquidity and resilience we have seen in Bitcoin in recent weeks is evidence of strong market demand,” said Miguel Morel, CEO of blockchain data firm Arkham Intelligence.
He added, “I don’t expect (Genesis News) to have any more impact than what we’ve already seen.”
Lastly, Julio Moreno, head of research at an on-chain and market data analytics company. CryptoQuant—agreed that “increasing demand for Bitcoin due to Bitcoin ETFs” is enough to alleviate downward pressure.
“In terms of margins, prices may come down. In fact, the day FTX sold $1 billion worth of GBTC stock, the price fell 5%,” Moreno said. decryption. “But the impact may be limited. “The market is already anticipating this sale,” he said.
CryptoQuant data alsoHe added that unrealized profits for short-term Bitcoin holders are relatively low, which may mean selling pressure is low.
editor Ryan Ozawa.
