Cryptocurrency analyst and enthusiast, Chris J Terry, shares his insights on the price action of Bitcoin, predicting a continuous decline in the price of the crypto asset. Taking to the social media platform X (formerly Twitter), Terry anticipates a possible “continuation of a flat or declining trend” for Bitcoin. However, he believes that this downtrend will persist until Grayscale Bitcoin Trust (GBTC) is fully “liquidated.” Terry points out that this liquidation will require a significant selling activity worth $25 billion over the next few weeks.
Central to Terry’s analysis is Grayscale’s decision to maintain Bitcoin ETF fees at 1.5%. In his view, this choice represents the “biggest strategic error” in cryptocurrency history. Terry suggests that Grayscale’s action may have far-reaching consequences on the broader crypto market and could potentially hinder wider adoption. By emphasizing the interconnectedness of investment vehicles, Terry underscores the importance of taking into account such decisions. Specifically, he believes that until the liquidation of GBTC is complete, the price of Bitcoin will continue to be flat or decline.
Not everyone in the cryptocurrency community agrees with Terry’s insights. Galaxy Digital CEO Mike Novogratz expresses disagreement with Terry’s analysis. While Novogratz acknowledges the possibility of some selling pressure, he believes that investors will shift to other ETFs, particularly supporting BTCO. Novogratz even highlights the Invesco Galaxy Bitcoin ETF (BTCO) as his favorite among the available products. Novogratz points out the importance of maintaining perspective in the face of transient market conditions. He suggests that the current developments may actually serve as a catalyst for older investors or boomers to enter the crypto landscape. Additionally, Novogratz mentions the potential for increased leverage by having 4×5 exposure to Bitcoin through BTCO. Despite the short-term challenges, Novogratz remains optimistic, stating that “BTC will go higher in the next six months after this indigestion.”
A recent report from Coinshares reveals that Bitcoin saw an outflow of $25 million. Coinshares shares this information in its latest weekly “Digital Asset Fund Flows” report. The report also highlights a substantial $11.8 billion in BTC trading volume from the previous week, which is seven times higher than the average weekly trading activity recorded in 2023. Notably, ETFs account for 63% of all Bitcoin volumes on reliable exchanges. Despite a decline of 2.16% in the past day, Bitcoin’s trading volume has increased by over 81% in the last 24 hours. As of the time of writing, Bitcoin is trading at $40,827.
While Chris J Terry predicts a continuous decline in the price of Bitcoin until Grayscale Bitcoin Trust is fully liquidated, not everyone agrees with this analysis. Galaxy Digital CEO Mike Novogratz offers a different perspective, suggesting that investors will shift to other ETFs, particularly BTCO. Novogratz remains optimistic about Bitcoin’s future, expecting it to rise in the next six months. The recent Coinshares report reveals a significant outflow of funds from Bitcoin but also indicates strong trading volume, with ETFs accounting for a majority of Bitcoin volumes on reliable exchanges. As always, it’s essential for individuals to conduct their own research and exercise caution when making investment decisions.
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