The world’s biggest cryptocurrency isn’t out of the woods yet after “realizing the largest absolute losses in history.”
Institutional demand for Bitcoin “remains slow” — and the market is continuing to fight for support, according to a new report.
Losses are confirmed when BTC that was last moved at higher prices ends up being spent again at a lower price — indicating that it was sold for a loss.
According to Glassnode, institutional demand for Bitcoin was a driving factor in 2020 and 2021 — with prices often soaring on the back of significant announcements.
But the intelligence firm’s report pointed out that the Grayscale Bitcoin Trust has been consistently trading at a discount in recent weeks. This effectively means that the shares in this trust are now markedly cheaper than the Bitcoin that is held in reserve.
Where We’re At
Although it bounced back from $30,000 in a convincing fashion, Bitcoin is now facing an upward struggle as it attempts to push beyond $35,000.
After hitting highs of $36,542.11 in the past 24 hours, BTC was lingering just below $35,000 at the time of writing.
One significant upcoming milestone will come in the middle of July, when a substantial number of investors in the Grayscale Bitcoin Trust will be given an opportunity to sell their funds.
Qualified investors who purchase shares from Grayscale are able to sell them publicly after six months — and $1.7 billion flowed into its fund back in January.
JPMorgan’s Nikolaos Panigirtzoglou has warned “these investors are likely to sell at least some of their GBTC shares, exerting downward pressure on GBTC prices and on Bitcoin markets more generally.”