The cryptocurrency market is witnessing a multibillion-dollar speculation as investors reportedly exit Grayscale’s Bitcoin Trust (GBTC), causing a significant dip in the price of Bitcoin. The leading cryptocurrency dropped below $39,000 for the first time in nearly two months, currently trading at $39,949.
Since its transformation into a spot Bitcoin exchange-traded fund (ETF) on January 11, GBTC has experienced substantial outflows, totaling over $3.4 billion. Grayscale, in response, has deposited billions in Bitcoin to the Coinbase Prime crypto exchange, presumably for sale.
Concerns are mounting that the exodus from GBTC may continue. Bloomberg ETF analyst Eric Balchunas revealed that GBTC recorded outflows of $515 million on January 23, constituting a 13% reduction in its shares outstanding. While the latest data hints at a potential slowdown in outflows, the extent of the exodus remains uncertain.
In a poll on X (formerly Twitter), Balchunas sought opinions on how much further the mass exodus would go. Nearly half of the respondents suggested it could reach between 35–50%, although Balchunas and Bloomberg ETF analyst James Seyffart estimated a significant impact at around 25% of outstanding shares.
Grayscale’s official website indicates 600.5 million shares outstanding, holding a total of 536,694.9 Bitcoin in trust. However, data from CC15Capital reveals that 82,525 Bitcoin has left GBTC since January 10.
Reports attribute the recent outflows to the defunct crypto exchange FTX, which reportedly sold two-thirds of its 22.3 million shares in GBTC over three days of trading. FTX is said to still possess around eight million shares, valued at approximately $281 million.
Additionally, concerns are emerging about potential movements in Bitcoin from the Mt. Gox case. The Mt. Gox trustee reportedly contacted creditors for identity verification to facilitate the use of crypto exchange accounts for repaying Bitcoin and Bitcoin Cash. This development could exert further pressure on Bitcoin’s price.
As of now, Bitcoin is trading at $39,949, reflecting a 0.60% increase for the day, according to CoinMarketCap. The Crypto Fear & Greed Index hit a 100-day low of 48 on January 24, indicating increased market uncertainty.
