The effects of the Grayscale Bitcoin Trust (GBTC) on Bitcoin remain unclear as its unlocking draws closer. Some believe it to have an adverse impact on the flagship crypto asset, while others have a different opinion.
One of many, standing in Bitcoin’s corner is Sam Bankman-Fried, CEO of FTX crypto exchange. He is of the opinion that the GBTC unlock will not have an adverse impact on the largest cryptocurrency. Bankman-Fried also has a few reasons that support his opinion in favor of BTC.
The outcome of the GBTC unlock is yet to be seen, however, it does not reduce the significance of BTC. Therefore, if you want to buy Bitcoin you can click on SwissBorg or Kraken (U.S. citizens) and invest with a free bonus.
You can also look for the best crypto exchanges, such as PrimeXBT Covesting if you are looking to become a crypto trader.
Why Bitcoin is Likely to Remain Unaffected by GBTC Unlock?
Some of the most recognizable names in the crypto space such as Alex Mashinsky and JP Morgan have predicted a bearish scenario for the flagship digital asset.
- JP Morgan’s analysts predict that around 40,000 more Bitcoin will be unlocked from the Grayscale Bitcoin Trust this month. The number of BTC unlocked will be worth over $1.32 billion. This will offer a chance to the BTC investors and hodlers to sell their shares, which can be unbeneficial for the digital asset.
- Alex Mashinsky also predicts that the outcome of the whole situation will be a selling pressure worth $5 billion. This is likely to take the price of the crypto asset below $30,000.
Despite these predictions, Bankman-Fried believes that the GBTC unlock will not have much of an adverse impact on the top cryptocurrency.
Sam Bankman-Fried shared his thoughts with his Twitter followers.
Bankman-Fried’s opinion is backed up by on-chain analyst Willy Woo, who has predicted that GBTC shares that will be unlocked will have a neutral impact on BTC in the long term. Woo stated that the arbitrary opportunities presented by the GBTC unlock are likely to balance out with time.
He also addressed the confusion people often have regarding the coins involved in GBTC unlock and clarified that once the Bitcoin is in the GBTC none of it ever leaves.
Willy Woo stated:
“Grayscale is a unique product. It’s designed as a black hole that sucks in BTC. No BTC ever leaves the trust. Apart from Grayscale taking its 2% management fees from the holdings, this is the only way to reduce the GBTC inventory.”
Should Bitcoin Investors and Traders Be Concerned?
As mentioned in Willy Woo’s statement above, Grayscale Bitcoin Trust is a unique product. However, the kind of impact it will have on the flagship crypto asset is something yet to be seen.
Bitcoin is the top digital currency in the crypto market with an undeniable significance and utility. The crypto asset has been embraced by numerous individuals and companies. It has also made its way to be recognized as a legal tender by countries, starting with El Salvador.
Despite the unlocking of GBTC shares that is approaching, the investment in BTC by interested parties has not ceased. This can indicate a possibility where the flagship digital asset remains unaffected. However, the facts will be seen once the GBTC has been unlocked.
Even though the situation is currently uncertain, Bitcoin investors and traders should not be concerned. If you are also interested in becoming a BTC investor, make sure you choose some of the safest crypto exchanges as mentioned above.
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