Bitcoin (BTC), the largest cryptocurrency, continues to face selling pressure, recently dropping by 2.72% to $40,766. This decline is attributed to significant sales in the Grayscale Bitcoin Trust (GBTC), which have been converted into spot Bitcoin ETFs. Subsequently, funds from the ETF were transferred to other spot Bitcoin ETFs, with an influx of over $27 billion within a week.
Crypto analyst Chris J. Terry predicts that Bitcoin’s price will continue to experience a sideways or downward trend until the liquidation in GBTC is complete, with an estimated $25 billion in sales expected in the coming weeks.
Terry links the current situation to Grayscale’s decision to maintain a 1.5% ETF management fee, which he sees as a strategic mistake with potentially lasting effects on market dynamics and broader cryptocurrency adoption.
Grayscale CEO Michael Sonnenshein disputes the claim that high management fees in GBTC lead to strong liquidations. In contrast, Galaxy Digital CEO Mike Novogratz acknowledges GBTC’s role in the selling pressure but emphasizes the importance of not losing sight of the bigger picture and the ease of market entry for older investors with ETF approvals.
Despite the current downtrend, Novogratz remains optimistic about Bitcoin’s future, expecting the price to rise in the next six months. On-chain College’s analysis highlights the importance of Bitcoin’s 111-day moving average as a short-term indicator, with the potential support or resistance levels between $37,700 and $38,100 being critical to watch if the price drops further.