Is Grayscale the main reason for BTC's decline since 11 January 2024

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Based on on-chain data, Grayscale has recorded the transfer of 4,000 BTC to Coinbase, with each transaction valued at 1,000 BTC, according to information from Arkham.

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Following this update, the price of Bitcoin exhibited a negative response for two consecutive weeks, declining from $48,600 USD to $40,900 USD between January 11 and January 22nd, 2024.

While Grayscale’s accumulated total assets have reached nearly $25 billion, surpassing all other ETF funds. What is noteworthy is when will the selling pressure from Grayscale stop? And is the demand for ETFs large enough to overcome the selling pressure from investors who have been ‘holding losses’ in Grayscale (GBTC) for many consecutive years?

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The volatile nature is a hallmark of the cryptocurrency market; hence, it is normal. The price of Bitcoin can fluctuate rapidly within a short period.

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They said Grayscale sells a corresponding amount of Bitcoin as Investors are offloading GBTC, and this process aligns with ETF’s operation.

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So where will the money flow when investors sell GBTC—into other BTC ETFs, or will they simply take profits?

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I guess they took profits as the market is still in a bloodbath situation.