Bitcoin Price Likely To Increase GBTC Unlock By $ 530 Million In July

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Bitcoin (BTC) won’t budge much after the Grayscales giant’s 16,000-BTC unlock date, after all, crypto trading firm QCP Capital has said.

In its latest market update released on Wednesday, analysts downplayed the popular theory that the Grayscale Bitcoin Trust (GBTC) will cause BTC price volatility in the weeks to come.

No significant impact expected from GBTC

As Cointelegraph reported, the GBTC is expected to release or unlock a large amount of BTC after a six month blocking period.

A frequent event, the scale of the releases planned for this month nevertheless raises fears of an increase in market volatility, slowing down a possible recovery.

On July 18, for example, the biggest unlock date, 16,240 BTC will become available, which is currently $ 530 million.

For QCP, however, there is little cause for concern.

The upcoming releases are for institutional holders who subscribed directly to GBTC 6 months ago and this bundle includes all new positions from Q1 2021, largely the last tranche of ARK, he explained.

To make it clear, we don’t expect these unlocks to be enabled. [their] clean to have a significant impact on the overall market outside of GBTC itself. Most of the important institutional positions that had subscribed in kind before have already been released earlier and they have suspended the sale at the current reduced price.

Right now, even GBTC unlock events are expected to be all but gone by mid-August, reducing the likelihood of further selling pressure.

GBTC unlock events table. Source: BybtMacro Factors May Prevent Bigger BTC Sale

However, the possibility of a larger Bitcoin sell-off event at the end of the year is a headache for QCP.

Related: Bitcoin Price Could Reach $ 85,000 In Months As Indicators Turn Bullish

Consistent with historical precedent, the end of the fourth quarter could see a classic boost scenario that follows a rally and rise from current levels.

These analysts compared to 2018, which peaked with a bearish market floor of $ 3,100, 84% lower than all-time highs of $ 20,000 12 months earlier.

Right now our trading plan follows the analog BTC 2018 where we expect a moderate trading environment by August (short flight) followed by a possibly rally behind the implementation. of the mainnet EIP-1559 (long spot, long calls) then the larger liquidation of wave 5 of the fourth quarter on the Fed’s decline (spot selling, buying downside risk reversals), they continued .

Meanwhile, the height of BTC / USD is the subject of fierce debate. Among the most bullish proven patterns is stock-to-flow, which creator PlanB said that a price of $ 135,000 in December was the worst-case scenario.

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