Grayscale Makes a Huge Bitcoin Purchase, But BTC Goes 'Meh'. | Crypto Land
Grayscale Makes a Huge Bitcoin Purchase, But BTC Goes 'Meh'.
Even though it was presumed to potentially act as rally fuel, major US-based digital asset manager Grayscale Investments added thousands of bitcoin (BTC) to its Grayscale Bitcoin Trust (GBTC) - but the number one's crypto price kept moving in his now usual range.
Yesterday, Grayscale investments BTC holdings increased by BTC 16,240, going from BTC 616,560 to BTC 632,800 (USD 23,5bn). Per the current price of bitcoin, this would mean they have added nearly USD 602.5m.
Yet, despite this, bitcoin barely budged. At 14:53 UTC on Tuesday, bitcoin is trading at USD 37,073 and is up by almost 2% in a day and 11% in a week. Actually, for the majority of the past seven days, it's been trading within the USD 34,500 - USD 37,500 range - a movement still undisturbed by the Grayscale purchase.
"While BTC is consolidating, Grayscale doesn't stop grabbing all the BTC they can get," commented founder Crypto Ed. "Past 24hrs they added another 16k BTC to their holdings. The largest 24hrs increase in past 7 months and there are still people bearish," he added.
As was reported just yesterday, the strategists at major investment bank JPMorgan stated that BTC's price could drop further or break above the relevant USD 40,000 level again, and the outlook could be determined by the pattern of demand for BTC futures and the Grayscale Bitcoin Trust. For the breakout to happen, the flow into the Trust would likely need to sustain the 100m a day pace over the coming days and weeks, they said.
The lack of price reaction to the smart money coming in seems to have baffled quite a few Cryptoverse residents, with many offering theories as to why this may have been the case. Crypto trader Loma tweeted that "either they bought the top or most of y’all wrong and this bull cycle isn’t anywhere close to being done," adding, "I’m gonna side with GrayScale on this one."
Redditors have also shared a few theories: 'Shushani', for example, suggested that the purchase was done over the counter (OTC) instead of through exchanges, and that the company bought it directly from whales or miners, with 'simplelifestyle' adding "weak hands, newbies, bears, shorters, day-traders, gamblers and speculators" to the potential sellers. While 'Jayfree138' partially agreed, they added that people have also been selling to lock in gains and pay their monthly expenses. Meanwhile, 'Illewsor' suggested that when buying OTC "the supply shock lags quite a bit before being reflected in the price."
