- 16,000 BTC is set to be unlocked by the Grayscale Bitcoin Trust in July.
- Crypto enthusiasts are paying close attention amid swirling rumours that volatility might shoot through the roof.
- Historically, the month of July has been particularly bullish for bitcoin and things could easily go either way for Bitcoin.
- The Grayscale Trust is reported to own around 654,885 Bitcoin and more impressively, 46% of the 1.4 million BTC of listed companies.
Bitcoin is set to undergo a defining moment in the third quarter of 2021, as around 16,000 BTC are set to be unlocked by the Grayscale Bitcoin Trust. According to crypto enthusiasts, the impact of this move from Grayscale will trigger massive spasms of price volatility for the largest cryptocurrency on the market.
As bitcoin hovers at around the $30,000-$40,000 range, it will be interesting to see how unlocking 16K BTC will affect the price of the cryptocurrency.
Grayscale’s Influence: 16,000 BTC – Cause for Worry?
Grayscale stands as a behemoth in the cryptocurrency ecosystem because of the huge amount of assets in its possession. Launched in 2013, the Grayscale Bitcoin Trust has grown to hold around 654,885 BTC, which amounts to around 3% of the total Bitcoin in circulation.
One rule regulating the relationship between investors and the trust is that they must lock their bitcoin in the trust for 6 months before the asset can be assessed.
The trust is set to unlock around 16,000 BTC, with a significant portion to be released to investors on July 18th, 2021. 16,000 BTC holds a value of around $650 million, and while it is uncertain whether or not investors will dispose of their assets, the sheer volume of the unlocked BTC is bound to affect Bitcoin’s volatility.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Bitcoin and July – Two Peas in a Pod
Historically, July has always been a bullish month for Bitcoin, and enthusiasts of the cryptocurrency will certainly be hoping that history repeats itself after going through a period of lacklustre performance in June. According to Bybt, July of 2020 was the best of recent years as it marked the start of the bull market.
Following the declarations made by Elon Musk about Bitcoin’s environmental impact and the decision to halt the acceptance of bitcoin as a method of payment, the price of Bitcoin fell drastically.
The lock-in of the Bitcoin Taproot Upgrade has offered a glimmer of hope to investors, but the upcoming release of 16,000 BTC, worth around $650 million, leaves hopes of a July boom hanging in the balance, amid fears of increased volatility.
On the Flipside
- The price of bitcoin hits a two-week low in the face of China’s heightened anti-cryptocurrency crackdown.
- Weibo, the “Chinese Twitter,” was among the latest to suspend accounts for breaking relevant laws and regulations surrounding crypto.
- Bitcoin fell 10% to trade at $32,335 following the reiteration of the rules precluding banks and financial institutions from facilitating cryptocurrency transactions, and the actions that were taken against miners.
Where Bitcoin Stands
The month of June has been below par for the world’s largest cryptocurrency, characterized by falling prices and unsavoury news. Trading at $32,335, bitcoin has fallen by over 7% over the last day, and in the last 7 days, its value has fallen by over 19%.
This decline has also been reflected in its market capitalization, which fell by 6.60% to settle at $607 billion. Despite bearish sentiments, trading volume over the last 24 hours is up by 43.15% at $49.6 billion.
