Analyst Warns BTC Price Will Remain Flat as $25 Billion GBTC Liquidation Looms, Galaxy Digital Founder Disagrees
Bitcoin (BTC) investors should brace themselves for potential price stagnation or even a decline as the liquidation of $25 billion worth of Grayscale Bitcoin Trust (GBTC) looms.
Chris J Terry, founding partner of BTCdata Corporation, recently expressed his concerns about the impact of GBTC’s massive sell-off on the cryptocurrency’s price.
“Looks like BTC price will continue flat/down until GBTC is liquidated, $25B of selling over the next few weeks,” he said in a recent post on X (formerly Twitter).
“Grayscale’s decision to keep ETF fees at 1.5% will go down as the biggest strategic error in crypto history. GREEDY IDIOTS.”
However, Mike Novogratz, the founder of Galaxy Digital, disagreed with Terry’s analysis.
He said that while some investors may indeed sell GBTC, many will transition their holdings into other exchange-traded funds (ETFs).
I disagree with this. While I think people will sell GBTC, I think most will switch into other ETFs – $BTCO being my favorite !!
Let’s not miss the forest through the trees. It’s now gonna be far easier for boomers to buy corn. And you can get 4×5 times leverage on this… https://t.co/ZJhumt3tzx
— Mike Novogratz (@novogratz) January 21, 2024
Novogratz specifically mentioned his preference for Invesco’s BTCO ETF, which has an annual fee of 0.39%, or $39 on a $10,000 investment.
Novogratz also highlights the broader implications of the GBTC liquidation, emphasizing that it will now be easier for traditional investors, particularly baby boomers, to enter the cryptocurrency market.
Additionally, he points out the potential for increased leverage with exposure to Bitcoin, citing the possibility of 4x or 5x leverage.
Novogratz remains optimistic about the future of BTC, suggesting that the current
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