Summary
A US bankruptcy judge has granted permission for bankrupt crypto lender Genesis to sell $1.6 billion in Grayscale Bitcoin Trust (GBTC) shares to repay creditors. This news has raised concerns that the selling of such a large amount of BTC could cause a plunge in its price, as seen in the past when Grayscale sold large amounts to Coinbase. However, experts believe that the impact on the price of Bitcoin may not be as significant this time, citing the success of Bitcoin ETFs and the high level of demand in the market. Additionally, data shows relatively low selling pressure from short-term Bitcoin holders.
Key Points
1. The price of Bitcoin surged to levels not seen since the 2021 bull run, but there are concerns about its sustainability.
2. A U.S. bankruptcy judge granted bankrupt crypto lender Genesis permission to sell $1.6 billion in Grayscale Bitcoin Trust (GBTC) shares to repay creditors.
3. Experts believe that the selling of GBTC shares by Genesis may have a limited impact on the price of Bitcoin, as the market is already expecting this selling and the demand from Bitcoin ETFs can mitigate downward pressure.