Until the Grayscale Bitcoin Trust is fully liquidated, there won't be any growth in the price of Bitcoin

Until the Grayscale Bitcoin Trust is fully liquidated, there won't be any growth in the price of Bitcoin

Until the Grayscale Bitcoin Trust is fully liquidated, there won't be any growth in the price of Bitcoin

The PI indicator suggests that when the price of bitcoin corrects around $37,000, selling pressure is likely to persist.

The price of Bitcoin (BTC), the most popular cryptocurrency in the world, dropped by an additional 2.72% to $40,766 due to selling pressure. The latest selling pressure coincides with Grayscale's aggressive selling of Bitcoin in the wake of the GBTC share sale. But the same money is also flowing quickly into recently introduced Bitcoin ETFs, which have raised nearly $27 billion in only one week of offering.

Liquidation of the Grayscale Bitcoin Trust

Crypto expert Chris J. Terry offers insight into the present situation of Bitcoin (BTC) pricing in a new report, forecasting a flat or persistently declining trend. Terry predicts that this pattern will hold until the Grayscale Bitcoin Trust (GBTC) is fully liquidated, with an estimated $25 billion in sales anticipated in the next weeks.

Terry says that Grayscale's choice to impose a 1.5% ETF fee is what he believes to be the worst strategic mistake in the history of cryptocurrency. They contend that Grayscale's decision may have long-term effects on the industry and perhaps impede mainstream adoption. Remarks from Analysts Regarding Investment VehiclesThe surges demonstrate how interconnected they are and how they affect the bitcoin market as a whole.

Michael Sonnenshein, CEO of Grayscale, disputes this assertion, claiming that significant liquidations are being brought on by excessive GBTC costs.

Mike Novogratz, CEO of Galaxy Digital, has a different take. Although Novogratz acknowledges that there may be some selling activity in GBTC, he thinks that most investors will move to other exchange-traded funds (ETFs), with $BTCO receiving particular support.

Novogratz highlights the need of maintaining perspective in the face of transient market conditions. He emphasized that new advancements would facilitate elder investors' (boomers') entry into the bitcoin space. He also highlights the possibility of higher leverage with 4x exposure to Bitcoin via $BTCO.

Novogratz is bullish about Bitcoin's future despite the present market turbulence, believing that obstacles will pass and that the price of the cryptocurrency would climb over the next six months.

Expectations for the price of bitcoin

As the main short-term indicator in Pi Cycle research, the significance of the Bitcoin 111-day moving average was highlighted in a recent study by On-Chain College. This moving average is used with a short-term holder cost basis for Bitcoin in the research.

During a period of range-bound trading for Bitcoin, the on-chain collegiate progressively reduces the difference between these two indications. The study indicates that $37.7K to $38.1K are the levels to keep a careful eye on if the price of the cryptocurrency drops much more. Because it offers information about possible dynamics of support or resistance based on the convergence of various critical indicators, this level is regarded as significant.