The Crypto Dip Is Likely To Continue Until Grayscale Is Liquidated

Hey folks, check this out – Grayscale’s been making moves with their Bitcoin after the ETF launch and liquidating much of their holdings, and it’s causing a bit of a buzz in the crypto world not to mention some major dips in the markets. And the crypto dip is likely continue until Grayscale finishes dumping their Bitcoin on the market.

FTX’s Big Sale

So, unless you have lived under a rock the last few years, you have heard of FTX, and they sold a whopping $1 billion worth of Grayscale’s Bitcoin ETF during their bankruptcy proceedings. That’s a lot, and it kind of shook things up in the markets. And they have more to sell that they just moved over to Coinbase, so many analysts, including myself, thing the price is going to continue to dip until they finish selling.

GBTC’s Money Outflow

Now, Grayscale Bitcoin Trust (GBTC) is like a big player in the game, and it saw a massive sell-off after the ETF launch. We’re talking about $1.2 billion flowing out in just three days – that’s a big deal. And guess what? It caused the price of Bitcoin to drop by around 10%. This is mainly because they refused to lower their management fees for their ETF as they transitioned from their trust. The other ETFs charge much less in fees which also was a big reason for the sell off.

Grayscale had to move fast to deal with a rush of people wanting their money back. They sent thousands of Bitcoins – like 16,712 of them, worth more than $726 million – to Coinbase, and from what I saw today on Twitter, they have moved more.

Market Impact

Okay, so Grayscale is selling, but hold on! Other Bitcoin ETFs are grabbing more BTC, and the ETF market as a whole is buzzing with activity since the launch. Sure, there was a temporary drop in Bitcoin’s price, but it bounced back strong. But in the short term, you may want to be looking at short trades until Bitcoin finds its bottom.

What I am keeping an eye on is for alts to make a big bounce here as Bitcoin starts to settle and find bottom. The declining Bitcoin dominance shows me that Ethereum, Solana, BNB, and some of the other major altcoins may be what you want to be watching for as far as trades for the next week or so. Definitely not financial advice, just sharing my opinion and what I am looking at for my own trades. But just remember to trade with the trend because it is your friend. Be on the lookout for short opportunities because this crypto dip is likely to continue for a few more days.

Sources of information:
CoinGape
CCN
CoinDesk
Ash Crypto on Twitter/X

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