Cryptocurrency analyst and enthusiast, Chris J Terry, has recently shared his views on the price action of Bitcoin, projecting a continuous downward trend for the popular crypto asset. Terry took to the social media platform X (formerly Twitter) to express his belief in the possibility of a “continuation of a flat or declining trend.” His analysis suggests that this downtrend will persist until Grayscale Bitcoin Trust (GBTC) undergoes complete liquidation. Terry predicts a staggering $25 billion worth of selling activity over the next few weeks, which he deems necessary for executing the liquidation process.
Terry attributes the need for liquidation to Grayscale’s choice of keeping Bitcoin ETF fees at 1.5%. According to Terry, this decision by Grayscale is the “biggest strategic error” in the history of cryptocurrencies. He believes that such actions may have a long-term impact on the overall cryptocurrency market and could potentially hinder its wider adoption. Terry’s post on social media reads, “Looks like the BTC price will continue flat/down until GBTC is liquidated, $25B of selling over the next few weeks. Grayscale decision to keep ETF fees at 1.5% will go down as the biggest strategic error in crypto history. Greedy idiots.”
However, not everyone in the cryptocurrency community shares Terry’s analysis and predictions. Galaxy Digital CEO, Mike Novogratz, expressed his disagreement with Terry’s viewpoint. Novogratz acknowledges the possibility of some selling pressure activity but believes that investors will shift to alternative ETFs, particularly showing support for BTCO (Invesco Galaxy Bitcoin ETF). Novogratz even states that BTCO is his favorite among the available products.
Novogratz also emphasizes the importance of maintaining a broader perspective in light of temporary market conditions. He considers this recent development as an opportunity for older investors or baby boomers to enter the crypto landscape. Novogratz further highlights the potential for increased leverage by utilizing 4×5 exposure to Bitcoin through BTCO. Despite the current market turbulence, Novogratz remains optimistic, stating that “BTC will go higher in the next six months after this indigestion.”
A report from Coinshares reveals that Bitcoin experienced a significant outflow of $25 million. Coinshares provided this information in its recent weekly report, “Digital Asset Fund Flows.” Additionally, last week saw a massive $11.8 billion in BTC trading volume. Coinshares states that this volume is seven times higher than the average weekly trading activity observed in 2023.
The report also highlights notable withdrawals from digital asset investment products, amounting to approximately $24.7 million. Interestingly, the surge in trading activity indicates that ETFs account for 63% of all Bitcoin volumes on reliable exchanges. As of the time of writing this article, Bitcoin is currently trading at $40,827, reflecting a decrease of 2.16% in the past day. Despite the price drop, Bitcoin’s trading volume has increased by over 81% within the last 24 hours.
The predictions and insights presented by analyst Chris J Terry have generated intrigue within the cryptocurrency community. While Terry anticipates a continued decline in Bitcoin’s price, figures like Mike Novogratz express their disagreement, believing that alternative ETFs like BTCO will attract investors. The recent outflow and substantial trading volume reflect the active nature of the cryptocurrency market. Whether the liquidation of Grayscale Bitcoin Trust and the subsequent influx of selling activity will have a long-term impact on the market remains to be seen. As with any investment, it is recommended that individuals conduct thorough research and make informed decisions based on their own risk appetite.
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