Founder of Colorways Ventures: Grayscale still has a selling pressure of 281,045 BTC, approximately 12 billion US dollars

Kiarash Hossainpour, founder of Colorways Ventures and The Consensus, warned in a recent analysis that the Bitcoin market could face shockwaves. He pointed out that significant amounts of Bitcoin holdings might exert enormous selling pressure on the market in the first half of 2024.

 

Firstly, Hossainpour urged people to pay attention to Grayscale Bitcoin Trust (GBTC). Since the launch of its spot ETF, this trust's holdings have decreased from 621,000 BTC to slightly below 580,000 BTC. Compared with other providers like Bitwise (0.2%) and BlackRock (0.25%), this trust's high annual fee of 1.5% and Grayscale's track record have led to massive sell-offs which may be causing the current downward trend. There are no signs yet that this will end soon. Experts estimate there is still a selling pressure equivalent to about 281,045 BTC or approximately $12 billion.

 

Furthermore, bankruptcy proceedings for Celsius and FTX have intensified potential sell-offs. It is expected that liquidation and distribution will take place in the first half of 2024; around 38,000 BTC ($1.6 billion) provided by Celsius and roughly 20,500 BTC ($850 million) offered by FTX could potentially convert these assets into dollars.