Is Bitcoin Going To Zero As Grayscale Sends 10,000 BTC To Coinbase – Best Altcoins To Invest In Right Now
Investors are fretting over whether Bitcoin might be going to zero, as digital asset management firm Grayscale continues to dump BTC on the market from its Grayscale Bitcoin Trust (GBTC) ETF.
Just on Friday, Grayscale sent another $400 million worth of BTC to Coinbase to be sold, crypto analyst @CryptoTony__ reported.
" Grayscale sent 10,000 $BTC worth $400m to #Coinbase "
Are we going to 0 .. pic.twitter.com/6KWsWPhjWD
— Crypto Tony (@CryptoTony__) January 25, 2024
He questioned whether Bitcoin is going to a price of zero.
Grayscale has been dumping Bitcoin from its GBTC fund following the fund’s conversion to a spot ETF this month.
That reflects investors dumping their GBTC holdings.
Investors have been selling GBTC for two main reasons.
Firstly, many savvy traders bought up a lot of GBTC in 2023 before it was an ETF, and when it was trading at a discount to net asset value.
That essentially meant they got their Bitcoin (in the form of GBTC shares) on sale.
Now that they can redeem GBTC 1:1 for Bitcoin or its cash equivalent, their trade is “won”.
They are now taking profit, and dumping their GBTC holdings.
Others are dumping GBTC because of its high management fee compared to other newly launched spot Bitcoin ETFs, like BlackRocks.
Many investors might also be dumping GBTC because they viewed recent spot ETF approvals as a “sell-the-news” event.
Grayscale sell pressure has been a significant factor driving prices lower since spot ETF approvals.
A recent Deutsche Bank survey suggested many retail investors think it will drop back under $20,000.
42% of survey participants said they “anticipate Bitcoin’s disappearance” eventually.
But the likelihood of Bitcoin going to zero is very slim.
For Bitcoin to go to zero, people need to stop
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