Analyst Foresees Bitcoin Downtrend Until GBTC Is Liquidated

Chris J Terry, a cryptocurrency analyst and enthusiast, has revealed his insights on the price action of Bitcoin, predicting a continuous decline in the price of the crypto asset.

Analyst Says Bitcoin Will Continue To Drop

The crypto analyst shared his insights regarding Bitcoin with the cryptocurrency community on the social media platform X (formerly Twitter), anticipating a possible “continuation of a flat or declining trend.”

He highlighted that the downtrend will continue until Grayscale Bitcoin Trust (GBTC) is fully “liquidated.” According to him, the liquidation will be possible with a whopping $25 billion worth of selling activity over the next few weeks.

Terry cites Grayscale’s choice to keep Bitcoin ETF fees at 1.5% as the cause of what he sees to be the “biggest strategic error” in cryptocurrency history. This implies that Grayscale’s action might have a long-term impact on the crypto market and may prevent wider adoption.

The post read:

Looks like the BTC price will continue flat/down until GBTC is liquidated, $25B of selling over the next few weeks. Grayscale decision to keep ETF fees at 1.5% will go down as the biggest strategic error in crypto history. Greedy idiots.

His analysis emphasizes how investment vehicles are interconnected and how this affects the state of the cryptocurrency market as a whole. However, this has attracted disbelief from a few famous figures in the community.

One of the figures who has expressed disbelief is Galaxy Digital CEO Mike Novogratz. He asserted that he “disagrees” with Chris Terry’s analysis because although Novogratz experts some selling pressure activity, he believes investors will move to other ETFs, especially supporting BTCO. Novogratz also pointed out that the Invesco Galaxy Bitcoin ETF (BTCO) is his favorite among the products.

Furthermore, Novogratz highlights the significance of maintaining perspective in light of transient market conditions. He noted that the latest development will facilitate older investors’ or boomers’ entry into the crypto landscape.

In addition, he has highlighted the potential for enhanced leverage by having 4×5 exposure to Bitcoin via BTCO. He then shared an optimistic look, noting that “BTC will go higher in the next six months after this indigestion.”

BTC Sees $25 Million Outflows 

A recent report from Coinshares has revealed that Bitcoin witnessed an outflow of a whopping $25 million. Coinshares shared the information in its most recent weekly “Digital Asset Fund Flows.”

It also noted a massive $11.8 billion in BTC trading volume last week. According to Coinshares, this is seven times more than the average weekly trading activity recorded in 2023.

There were notable withdrawals from digital asset investment products last week, totaling about $24.7 million. Notably, this spike in trading activity indicates that ETFs account for 63% of all Bitcoin volumes on reliable exchanges.

As of the time of writing, Bitcoin was trading at $40,827, indicating a decline of 2.16% in the past day. Despite the price drop, its trading volume is currently up by over 81% in the last 24 hours.

Featured image from iStock, chart from Tradingview.com

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