<p>The post <a href="https://coinpedia.org/news/bitcoin-price-at-crossroads-awaited-surge-hinges-on-grayscale-bitcoin-trusts-full-liquidation/" rel="noopener noreferrer nofollow">Bitcoin Tumbles as Grayscale Sells: Experts Clash on Future Price</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>The crypto market is witnessing a notable downturn in <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" rel="noopener noreferrer nofollow">Bitcoin prices</a>, with the world’s largest cryptocurrency facing selling pressure and dropping by an additional 2.72% to $40,766. This decline is attributed to a strategic sell-off by <a href="https://coinpedia.org/news/grayscale-bitcoin-etf-experiences-massive-579-million-outflow/" rel="noopener noreferrer nofollow">Grayscale Bitcoin Trust (GBTC)</a> post a recent share sale. Interestingly, the funds released from this liquidation are swiftly finding a home in new <a href="https://coinpedia.org/research-report/crypto-weekly-report-in-depth-insights-on-blockchain-bitcoin-altcoins-etfs-and-more/" rel="noopener noreferrer nofollow">Bitcoin ETFs</a>, accumulating a remarkable $27 billion in just a week.</p>
<p>With such a massive event, a pertinent question arises: Is Bitcoin currently priced in or out?</p>
<h2 class="wp-block-heading" id="h-expert-insights-and-predictions">Expert Insights and Predictions</h2>
<p>Cryptocurrency analyst Chris J Terry forecasts a continued flat or downward trend until the completion of GBTC’s liquidation, expecting a sizable $25 billion in selling activity in the coming weeks. Terry critiques <a href="https://coinpedia.org/news/not-all-approved-spot-bitcoin-etfs-will-survive-says-grayscale-ceo/" rel="noopener noreferrer nofollow">Grayscale’s </a>decision to maintain high ETF fees at 1.5%, deeming it a strategic misstep with potential consequences for the market and broader adoption.</p>
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   <p lang="en" dir="ltr">The Bitcoin 111 day moving average is the main short-term indicator used in the Pi Cycle analysis. <br><br>I overlapped it with the BTC short-term holder cost basis. <br><br>As BTC ranges, the gap between these two tightens.<br><br>$37.7K-$38.1K would be a level to watch should price fall further <a href="https://t.co/Mq5dTnGGwz" rel="noopener noreferrer nofollow">pic.twitter.com/Mq5dTnGGwz</a></p>— On-Chain College (@OnChainCollege) <a href="https://twitter.com/OnChainCollege/status/1749074109978333186?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 21, 2024</a>
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<p>Read More: <a href="https://coinpedia.org/news/why-is-bitcoin-price-dropping-despite-etf-approval/" rel="noopener noreferrer nofollow">Why is Bitcoin Price Dropping Despite ETF Approval?</a></p>
<p><strong>Clash of Views</strong></p>
<p>Grayscale CEO Michael Sonnenshein disagrees with the assessment, countering that high GBTC fees are not driving strong liquidations.</p>
<p>On the other hand, Galaxy Digital CEO Mike Novogratz anticipates some selling activity in GBTC but believes investors will transition to other ETFs, particularly endorsing $BTCO. Novogratz sees this shift as an avenue for older investors (boomers) to enter the crypto market, highlighting the potential for increased leverage with 4×5 times exposure to <a href="https://coinpedia.org/news/the-sec-may-approve-bitcoin-etf-options-in-february/" rel="noopener noreferrer nofollow">Bitcoin</a> through $BTCO.</p>
<p>Despite short-term market challenges, Novogratz remains optimistic about Bitcoin’s future, foreseeing the current issues subsiding and Bitcoin’s value seeing an upward trajectory in the next six months.</p>
<h2 class="wp-block-heading" id="h-post-gbtc-dynamics">Post-GBTC Dynamics</h2>
<p>He notes significant outflows post GBTC’s ETF transformation, but the equilibrium is restored as investors migrate to lower-fee ETFs. In simpler terms, while GBTC sold about 60,000 Bitcoins, other Bitcoin ETFs purchased around 72,000 Bitcoins, effectively counterbalancing GBTC’s sales impact.</p>
<p>Moreno attributes Bitcoin’s price volatility to short-term traders and whales who opted to sell after last year’s surge, speculating that the ETF approval might have triggered a “sell-the-news” event.</p>
<p>Also Read: <a href="https://coinpedia.org/news/why-is-grayscale-dumping-bitcoin/" rel="noopener noreferrer nofollow">Is Grayscale “Dumping” Bitcoin on the Market? Here’s the Truth</a></p>
<h2 class="wp-block-heading" id="h-what-does-the-pi-cycle-analysis-tell-us">What Does the Pi Cycle Analysis Tell Us?</h2>
<p>An insightful analysis by On-chain College emphasizes the importance of the Bitcoin 111-day moving average in Pi Cycle analysis. Overlaying this with the short-term holder cost basis for BTC, the narrowing gap between these indicators hints at a critical level to monitor at $37.7K to $38.1K.</p>
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">The Bitcoin 111 day moving average is the main short-term indicator used in the Pi Cycle analysis. <br><br>I overlapped it with the BTC short-term holder cost basis. <br><br>As BTC ranges, the gap between these two tightens.<br><br>$37.7K-$38.1K would be a level to watch should price fall further <a href="https://t.co/Mq5dTnGGwz" rel="noopener noreferrer nofollow">pic.twitter.com/Mq5dTnGGwz</a></p>— On-Chain College (@OnChainCollege) <a href="https://twitter.com/OnChainCollege/status/1749074109978333186?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 21, 2024</a>
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<p><strong>Is Bitcoin overvalued or poised for a comeback?</strong></p>

Bitcoin Tumbles as Grayscale Sells: Experts Clash on Future Price

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