Genesis GBTC Sale: Curse or Blessing for the Bitcoin Market

The crypto world is eagerly watching the latest developments surrounding the bankrupt Genesis. The crypto lending company recently received permission from a judge to sell a significant amount of Grayscale Bitcoin Trust (GBTC) shares. These stocks are directly related to the price of Bitcoin and selling them could have a big impact on the price of BTC.

Impact on the market and Bitcoin

Revenue is estimated at around $1.6 billion and has the potential to impact the market, but forecasts are mixed. On the one hand, outflows from GBTC, which have already exceeded $5 billion since it was approved to convert into a spot Bitcoin exchange-traded fund (ETF), could put additional pressure on the Bitcoin price. On the other hand, as cryptocurrency exchange Coinbase recently highlighted, these funds are likely to remain in the crypto ecosystem, which would have neutral or possibly even positive effects.

According to Coinbase, the money released by the possible sale will most likely end up back in the crypto market in the short term. For example, Genesis creditors are also paid in BTC rather than cash.

“In our view, many of these funds are likely to remain in the crypto ecosystem and contribute to an overall neutral effect in the market.”

BTC price is in a strong state

With this forecast, Coinbase somewhat agrees with a number of key analysts who also believe that the sale will not have a negative impact on the BTC price. James Seyffart, an ETF analyst at Bloomberg, says the ETFs’ success is more than enough to offset any selling pressure.

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Sam Callaghan, analyst at Swan Capital, appointed also that the sale will also be a one-off event. In his opinion, it is something that the market can easily absorb without causing a sharp drop in prices.

The crypto market is no stranger to volatility, and the Genesis situation is no exception. However, it is important to remember that despite possible short-term fluctuations, the long-term view of the market remains relatively unchanged.

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