Impact of GrayScale's GBTC unlocking event on the entire crypto market

[MrSpasybo 1049]

An event that is on every Bitcoin market participant’s radar this month is the multiple unlockings of BTC at institutional giant Grayscale.

As Cointelegraph explained, the Grayscale Bitcoin Fund (GBTC) is due to release in excess of 40,000 BTC in the coming weeks, this having been subject to a six-month lock-up period.

Opinions differ about its market impact. Some are concerned that selling pressure will increase (only to then become practically zero after the unlockings are over), while others argue that spot markets will be broadly unaffected.

Sunday, July 18, is of particular interest, with that day’s unlocking worth just over 16,000 BTC.

“When GBTC shares unlock and get sold, the GBTC Premium drops (share price drops relative to the BTC in the trust),” statistician Willy Woo commented last week.

 

Source: Countdown to Grayscale’s big BTC unlock: 5 things to watch in Bitcoin this week

 

On July 18, a large amount of GBTC will be unlocked, and according to many experts, this will have a negative impact on the crypto market.
Many people say that investors can only sell GBTC but can't actually sell BTC, and this has no negative impact on BTC price. However, if GBTC price drops, BTC price will be seen as too high compared to GBTC price and the BTC price will also tend to decrease, at least not growing.

And when BTC price is contained, we will probably see a serious drop in altcoins price, although the DeFi & NFT wave is gradually returning, because most of them are small cap tokens, easily be manipulated by whales.

 

I believe this is the reason for BTC price to drop below $28K, and hit the Spring point in Wyckoff's model. I am holding USDT and placing orders to buy more Altcoins at very low price.

 

What do you think about the impact of GBTC unlocking event on the crypto market? Are you planning to DCA in the next week?