Bitcoin is set to undergo a defining moment in the third quarter of 2021 as approximately 16.000 BTC will be unlocked by the Grayscale Bitcoin Trust. According to cryptocurrency enthusiasts, the impact of this move by Grayscale will unleash huge spasms of price volatility for the largest cryptocurrency on the market.
As bitcoin is hovering around $ 30.000 - $ 40.000, it will be interesting to see how unlocking 16K BTC will affect the price of the cryptocurrency.
Grayscale flu: 16.000 BTC - cause for concern?
Grayscale represents a colossus in the cryptocurrency ecosystem due to the huge amount of resources it possesses. Launched in 2013, the Grayscale Bitcoin Trust has grown to hold about 654.885 BTC, which is about 3% of the total amount of Bitcoin in circulation.
One thing that governs the relationship between investors and trusts is that they must lock their bitcoin in the trust for 6 months before the asset can be valued.
The trust is set to unlock approximately 16.000 BTC, with a significant portion to be released to investors on July 18, 2021. 16.000 BTC has a quotation of around $ 650 million, and while it is uncertain whether investors will have their assets or not, the volume of BTC unlocked is bound to affect Bitcoin's volatility.
Bitcoin and July - One foot in two shoes
Historically, July has always been a bullish month for Bitcoin, and cryptocurrency enthusiasts are definitely hoping history will repeat itself after going through a period of lackluster performance in June. According to Bybt, July 2020 was the best in recent years as it marked the start of the bull market.
Following Elon Musk's statements about Bitcoin's environmental impact and the decision to suspend acceptance of bitcoin as a payment method, Bitcoin's price has dropped dramatically.
The Bitcoin Taproot Upgrade lock-in offered investors a glimmer of hope, but the upcoming release of 16.000 BTC, worth around $ 650 million, leaves hopes of a July boom hanging amid fears. of greater volatility.
Where is Bitcoin now
The month of June was below average for the largest cryptocurrency in the world, marked by falling prices and bad news. Trading at $ 32,335, bitcoin has fallen by more than 7% on the last day and in the past 7 days its value has fallen by more than 19%.
This decline was also reflected in its market capitalization, which fell 6,60% to stand at $ 607 billion. Despite bearish sentiments, trading volume in the past 24 hours increased by 43,15% to $ 49,6 billion.
Do you think that as in past years, July could be a favorable month? Or will the continued bearish news lead the currency to a further decline? Let us know in the comments below.