The price of Bitcoin dropped below $41,000 because of selling pressure after the ETF was approved.
This decrease made investors worried and caused Bitcoin to lose over 10% in a week.
At this time, investors were unsure why the price of Bitcoin was going down and if it would keep going down. The well-known cryptocurrency analyst Scott Melker, also known as The Wolf of Wall Street, said that the recent drop in Bitcoin was because of Grayscale.
At this time, the person who studies and analyzes things said that a lot of people were selling their shares in Grayscale Bitcoin Trust (GBTC) after the ETF was approved. They also said that Grayscale had to sell a lot of Bitcoin to make up for the shares being sold.
The BTC price went down because Grayscale sold off their BTC.
Melker also said that Grayscale didn’t make any bad sales, and this is because of how ETFs work.
“Grayscale does not actively sell Bitcoin.
People are selling GBTC, which means Grayscale must sell an equivalent amount of BTC.
Grayscale is not malicious. “This is just the mechanics of an ETF.”
Bitcoin continues to trade at $41,455 at the time of writing.
Grayscale is not actively “dumping on the market.”
People are selling GBTC which means grayscale has to sell the equivalent amount of bitcoin.
It’s not nefarious. It’s simply the mechanics of an ETF.
— The Wolf Of All Streets (@scottmelker) January 18, 2024
*This is not investment advice.