Bitcoin is soaring! Grayscale and FTX completely destabilize the crypto market

Grayscale, the crypto whale, has made the market quiver by massively dumping hundreds of millions of dollars of Bitcoin at Coinbase Prime. This naturally raises questions about its intentions – are these just market maneuvers or something more insidious? At the same time, FTX adds a pinch of salt by liquidating $1 billion worth of Grayscale’s Bitcoin Trust (GBTC), casting a troubling shadow over the already tumultuous crypto world. The grand crypto dance continues!

Grayscale, Endless Bulk Bitcoin Transfers

Grayscale deposited 15,308 $BTC($623.8M) to #CoinbasePrime again 50 mins ago.

Since the ETF was passed, #Grayscale has deposited 63,991 $BTC($2.68B) to #CoinbasePrime during the opening hours of U.S. stocks (14:30 UTC).

According to Arkham, #Grayscale currently holds 549,116… pic.twitter.com/i1LtKryu6W

— Lookonchain (@lookonchain) January 22, 2024

« Grayscale deposited 15,308 $BTC ($623.8M) on Coinbase Prime just 50 minutes ago.

Since the ETF adoption, Grayscale has deposited 63,991 $BTC ($2.68B) on Coinbase Prime during US stock market hours (14:30 UTC).

According to Arkham, Grayscale currently holds 549,116 $BTC ($22.32B). »

Grayscale, the crypto investment giant that triumphed over the SEC in court, has recently sparked concerns in the market by transferring a massive $623 million of Bitcoin to Coinbase Prime. These transfers, totaling 15,308 BTC in a single operation, are in addition to the $2.68 billion of Bitcoin already deposited since the ETF’s approval. This significant movement fuels speculation and raises questions about the intention behind these massive transfers, CoinGape notes.

According to Arkham, Grayscale currently holds an impressive amount of 549,116 BTC, valued at $22.32 billion. This series of massive financial movements comes at a time when the crypto sector is already in turmoil. Market watchers are carefully monitoring the next developments, seeking to understand the impact of these actions on Bitcoin’s price dynamics.

FTX Divests from Its GBTC Holdings

A report by CoinDesk states that FTX is said to have sold about $1 billion of Grayscale’s Bitcoin Trust (GBTC), largely accounting for the trust’s recent fund outflow. Sources suggest that FTX has carried out massive transactions with GBTC, which has significantly contributed to capital outflows. The scale of this sale has caught the market’s attention as it occurred amid turbulence surrounding Grayscale.

The exact details of the transaction and the reasons behind this decision remain unclear, but FTX’s move appears to have a notable impact on the BTC market.

What could be the dynamic between different entities in the crypto sector and how does it influence the price of Bitcoin?

Grayscale Shock and a 15% Drop in Bitcoin Price

1/
What's $GBTC?

What's Greyscale?

And what has it to do with the price of Bitcoin?

🧵

— ELI5 of TLDR (@explain_briefly) January 19, 2024

After the Bitcoin ETF’s acceptance, the price of BTC has fallen by 15%. Grayscale, the second-largest holder of Bitcoin, saw its monopoly on legal exposure to Bitcoin come to an end. Other funds now offer more attractive exposure, with management fees up to six times lower than Grayscale’s.

Facing competition, Grayscale is massively offloading its bitcoins onto the market, transferring about 64,000 BTC to Coinbase since the day of the Exchange Traded Funds’ approval. Other funds are absorbing this selling pressure, mitigating the impact on the price of the queen of cryptos.