- Grayscale continued to transfer large amounts of their BTC holdings.
- The price of BTC grew, increasing profits for holders.
Bitcoin’s [BTC] price saw massive volatility after the ETF approval which caused FUD (Fear, uncertainty and doubt) amongst holders. Adding to the FUD was the Grayscale Bitcoin Trust’s(GBTC) numerous transfers of BTC.
The onslaught continues
In a recent transaction, Grayscale transferred 6,534 BTC worth around $274.95 million to CoinbasePrime. Since the ETF approval, Grayscale deposited a total of 119,663 BTC, valued at about $4.91 billion into CoinbasePrime.
At press time, Grayscale held an impressive 495,290 BTC, valued at $20.76 Billion.
Grayscale deposited 6,534 $BTC($274.95M) to #CoinbasePrime again 25 mins ago.#Grayscale has deposited 119,663 $BTC($4.91B) to #CoinbasePrime since the #ETF was passed.
And #Grayscale currently holds 495,290 $BTC($20.76B).https://t.co/ywvGy16eLP pic.twitter.com/SpgAAE7Lyu
— Lookonchain (@lookonchain) January 29, 2024
JP Morgan alleviates the tension
The heightened FUD, stemming from both market volatility and Grayscale’s large-scale transfers, could lead to increased selling pressure and a negative sentiment shift among Bitcoin investors.
Nevertheless, recent data from JP Morgan suggested a potential deceleration in Grayscale’s future transfers.
In a market strategy note, JP Morgan analysts asserted that profit-taking on Grayscale’s bitcoin ETF has likely reached its conclusion, mitigating any immediate downside risk for Bitcoin.
This analysis marked a shift in sentiment, contrasting with a previous note from JP Morgan that had anticipated disappointment among market participants regarding the ETF catalyst.
If the market perceives that the selling pressure from Grayscale is diminishing, it might instill confidence among investors, leading to a more stabilized and positive sentiment in the Bitcoin market.
The notion that downside risks for Bitcoin are limited, as stated by JP Morgan, could encourage investors to view the current market conditions with less apprehension.
Positive sentiment often encourages buying activity, potentially leading to an upward price movement for Bitcoin.
JP Morgan asserts $GBTC selling is largely over. pic.twitter.com/DzRz4INYhW
— ◢ J◎e McCann 🧊 (@joemccann) January 25, 2024
Read Bitcoin’s [BTC] Price Prediction 2024-25
State of BTC
At press time, BTC was trading at $43,361.83 and its price had grown by 2.88% in the last 24 hours. Along with the surge in price, there was an uptick observed in terms of the MVRV ratio as well.
A surge in MVRV ratio indicated that a majority of the BTC holders were profitable. If these holders decide to engage in profit-taking, it may hinder the prospects of BTC’s growth going forward.
Source: Santiment
