Attention to institutional investors in Bitcoin (BTC) as the coming major withdrawal date, triggers talk of new price fluctuations.

As popular Twitter commentator Lumdart and others pointed out this week, interest is focused on buyers and sellers of the Grayscale Bitcoin Trust (GBTC), where Bitcoin hovers around $ 40,000.

July means BTC price volatility
A giant of the institutional bitcoin area, GBTC manages over $ 24 billion in assets.

It is not always available – according to Cointelegraph, the fund operates with cyclical closures which this year coincided with a purchase price that is traded at a discount to the spot price.

This negative GBTC premium has been a major topic of conversation in itself, as the invested funds are locked in for a certain period and then released, so that investors can go out at certain times depending on when they buy.

GBTC Premium versus BTC / USD. Source: CryptoQuant / Twitter
The combination of a negative premium to the spot rate and massive fund openings means that July will be particularly interesting for BTC’s price movement. Previously, this adjustment meant increased volatility.

July 19 is the biggest unlocking day with 16,000 bitcoins ($ 627 million) released.

Trust Grayscale Bitcoin Trust opening dates. Source: Bybt.com
To break the downturn
For the popular trader with the pseudonym Loomdart, this nevertheless provides an opportunity to reduce the sales pressure and then stabilize, and paves the way for BTC speculators to break through long lines of resistance.

This could be a refreshing counterweight to the broader bearish picture in institutional markets, with open interest in bitcoin futures falling from the $ 30,000 fall before May.

Online analytics resource CryptoQuant noted a decline in interest last week, which in turn was accompanied by a significant drop in the total number of BTC transactions.

Source: CoinTelegraph

LEAVE A REPLY