As Bitcoin’s price continues to fluctuate, market players are laying out their observations for the apex cryptocurrency. In the near term, some key players expect Bitcoin’s price to continue in a downward trajectory, while others are certain that the big bull will make a recovery in the near term.
Mike Novogratz, the CEO of Galaxy Digital, is one such player who is convinced that Bitcoin will experience stability in the long-term. Novogratz’s statement comes in response to Chris Terry, an analyst who predicted that Bitcoin bulls will continue to have the upper hand as GBTC outflows increase.
“Looks like BTC price will continue flat/down until GBTC is liquidated, $25B of selling over the next few weeks. Grayscale’s decision to keep ETF fees at 1.5% will go down as the biggest strategic error in crypto history.” The analyst tweeted.
It bears mentioning that Bitcoin’s price has taken a downturn since the launch of Graysacle’s Bitcoin Spot ETF, which was initially filed as Grayscale Bitcoin Trust (GBTC).
According to reports, Grayscale’s GBTC has recrossed $1.5 billion in outflows since the approval of the Grayscale ETF. An analyst at JP Morgan predicts that “an additional $5 billion-$10 billion, could exit GBTC if it loses its liquidity advantage.”
The outflow of funds has impacted market sentiments, which has further resulted in a decrease in Bitcoin’s price value, and pulled the asset below its previous high of $41,169.
Meanwhile, Novogratz, who is convinced that the ongoing events will not sway the price of Bitcoin, explains that the road ahead for market players pulling out will be even tougher. In the second half of the year, Bitcoin’s price will skyrocket beyond its current levels, he added.
As his post reads;
“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 BTC exposure. This indigestion will end and BTC will be higher in 6 months.”
At report time, Bitcoin’s price is fluctuating between the $39,000 and $40,000 price levels. Although trading volume has surged by more than 84% over the last 25 hours, the asset is yet to clear off hourly and weekly losses.