As the re-accumulation phase is coming to an end, we are seeing bitcoin sell pressure go down drastically and may hit zero in the next month. Grayscale, being a giant in the institutional space, is currently managing $24 billion in bitcoin assets and is now the talking point as bitcoin hovers over $40,000.
As Cointelegraph reported, major market players are closely watching the moves made by the buyers and sellers of Grayscale Bitcoin Trust, as it operates with regular closing periods. This year, they are occurring at the same time when the buy-in price is trading at a discount to spot price.
Institutional market participants are also talking about GBTC premium reaching a negative level difference between its market price and native asset value. It is a major concern for long-term investors, as their funds will be locked up for an extended period, and it allows investors to cash out at particular times only.
Grayscale Trust Unlock will happen on July 19th, and we can expect to see increased volatility, as 16,000 BTC worth over 625 Million will be released. The price action will most certainly show a higher bullish picture with bulls cruising past over long-established resistance lines.
Some of the on-chain metrics also indicate the same bullish potential. The Adjusted SOPR is back above the 1.0 threshold, and we are no longer seeing coins being sold at a loss. It also shows us this is the deepest reset since March 2020, and bears will no longer be in control of the market. The double bottom or higher low indicates that we are at the end of a downtrend, and bulls are ready to control the market again.
In conclusion, the profit-taking process is almost over, and we are going to see a great start for Bitcoin next month. The negative premiums of GBTC will have increased volatility, and the number of sellers will reach zero. Also, the futures open interest is creeping back up, and it can come back significantly if we get a strong move in the up or downside. What was a no-man’s land a couple of weeks ago is now showing signs of huge bullish moves taking place, so buckle up for the volatility and see how bitcoin rides next month.
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
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