- Grayscale continued to transfer large amounts of their BTC holdings.
- The price of BTC rose, increasing profits for holders.
Bitcoins [BTC] The price saw tremendous volatility after the approval of the ETF, which caused FUD (fear, uncertainty and doubt) among holders. Adding to the FUD were the numerous transfers of BTC by the Grayscale Bitcoin Trust (GBTC).
The attack continues
In a recent transaction, Grayscale transferred 6,534 BTC worth approximately $274.95 million to CoinbasePrime. Since the approval of the ETF, Grayscale has deposited a total of 119,663 BTC, worth approximately $4.91 billion, into CoinbasePrime.
At the time of writing, Grayscale owned an impressive 495,290 BTC, worth $20.76 billion.
Grayscale deposited 6,534 $BTC($274.95 million). #CoinbasePrime again 25 minutes ago.#Grayscale has deposited 119,663 $BTC($4.91 billion). #CoinbasePrime since the #ETF was passed.
And #Grayscale currently holds 495,290 $BTC($20.76 billion).https://t.co/ywvGy16eLP pic.twitter.com/SpgAAE7Lyu
— Lookonchain (@lookonchain) January 29, 2024
JP Morgan eases the tension
The increased FUD, which stems 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 possible slowdown in Grayscale’s future transfers.
In a market strategy note, JP Morgan analysts claimed that profit-taking on Grayscale’s bitcoin ETF has likely reached its conclusion, mitigating any immediate downside risk to Bitcoin.
This analysis marked a shift in sentiment, in contrast to an earlier note from JP Morgan that had anticipated disappointment among market participants with the ETF catalyst.
If the market perceives that Grayscale’s selling pressure is easing, it could build confidence among investors, leading to a more stabilized and positive sentiment in the Bitcoin market.
The idea that downside risks for Bitcoin are limited, as stated by JP Morgan, could encourage investors to view current market conditions with less fear.
Positive sentiment often encourages buying activity, potentially leading to an upward price movement for Bitcoin.
claims JP Morgan $GBTC the sale is largely over. pic.twitter.com/DzRz4INYhW
— ◢ J◎e McCann 🧊 (@joemccann) January 25, 2024
Read Bitcoin’s [BTC] Price forecast 2024-25
State of BTC
At the time of writing, BTC was trading at $43,361.83 and the price was up 2.88% over the past 24 hours. Along with the price increase, an increase was also observed in terms of the MVRV ratio.
An increase in the MVRV ratio indicated that a majority of BTC holders were profitable. If these holders decide to take profits, it could hinder BTC’s growth prospects in the future.
Source: Santiment