Bitcoin Price Drops as FTX Dumps Massive Grayscale Holdings (crypto-news-flash)
- FTX sold approximately $1 billion of Grayscale’s Bitcoin ETF, significantly impacting Bitcoin’s market value.
- The recent sale by FTX led to a noticeable drop in Bitcoin price, with current values hovering around $39,596.43.
Following the recent CNF report ton Grayscale Moves Shake the Market: Details of the Transfer of $900 Million in Bitcoin, new marketing strategies by Grayscale are being implemented to mitigate capital outflows amid shifting cryptocurrency dynamics. Notably, FTX sold about $1 billion of Grayscale’s Bitcoin ETF, a key factor in the recent outflow.
FTX, like many other large crypto trading entities, has leveraged the discrepancy between the price of Grayscale trust shares and the net asset value (NAV) of the underlying Bitcoin in the fund. As of October 25, 2023, FTX held 22.3 million shares of the Grayscale Bitcoin Trust (GBTC), valued at approximately $597 million, according to a report by Kroll Structuring dated November 3, 2023.
The recent decline in Bitcoin’s price is primarily attributed to FTX’s actions. Grayscale’s decision to liquidate its Bitcoin holdings on the FTX exchange has contributed to a further drop in Bitcoin’s value. Consequently, Bitcoin’s price fell to around $40,000.
As depicted in the accompanying chart above, at present, Bitcoin is trading at $39,596.43, representing a 3.08% decrease over the last 24 hours and a 7.47% decline over the past week.
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