Genesis Sells GBTC Shares and Invests in Bitcoin: What’s Behind This Decision?

Genesis Sells GBTC Shares and Invests in Bitcoin

Genesis, specializing in providing cryptocurrency loans, has made a strategic decision to sell Grayscale Bitcoin Trust (GBTC) shares in order to raise funds for purchasing a larger amount of Bitcoin (BTC). This decision is a result of the financial difficulties the company is facing, as well as bankruptcy risks. As a result, Genesis has sold approximately 36 million GBTC shares to focus on digital assets.

Transformation of GBTC Shares into Bitcoin

Following the sale of GBTC shares, Genesis has acquired as much as 32,041 BTC with a total value of $2.1 billion. This transaction has caused significant volatility in the prices of GBTC shares, which are strongly correlated with Bitcoin prices in the market. Currently, the price of Bitcoin stands at $67,882.72, marking a 1.28% increase in the last 24 hours.

Optimism Ahead of the Fourth Bitcoin Halving

Leading investors, also known as “whales,” are actively accumulating BTC ahead of the upcoming fourth Bitcoin halving. This sentiment aligns with optimistic market expectations related to a potential reduction in cryptocurrency supply and a possible increase in value.

Cryptocurrency Market Analysis

QCP Capital, an analytical firm, has observed an increase in cash flows into spot Bitcoin ETFs in recent days. Additionally, a reduced leverage and a cautious approach among traders are contributing to the stability of the cryptocurrency market.

Anthony Scaramucci’s Forecasts

Anthony Scaramucci predicts a significant increase in the value of Bitcoin after the April halving. He estimates that the cryptocurrency’s price could rise even six to tenfold, although such an effect may occur gradually over time.