The Bitcoin price has faced tremendous selling pressure since the SEC’s approval of spot Bitcoin ETFs. BTC has experienced a 22% correction since hitting its 24-month high of $48,900, trading as low as $38,800 earlier this week.
According to CoinMarketCap, the Bitcoin price is currently trading near $40,100. Moreover, that is down 18% from its monthly high. Its market capitalization has dropped from over $950 billion on the 11th of January to $786 billion today.
However, the selling pressure on BTC could get much worse due to a positive supply shock. Subsequently, this could result in the Bitcoin price tumbling further. Several major entities – including hacked crypto exchange Mt. Gox, bankrupt crypto lending company Celsius, and even the US government – hold a significant amount of $BTC and could be looking to offload in the coming months.
Late on Thursday, the US government filed a notice to sell $130 million worth of Bitcoin seized from the Silk Road. Furthermore, Grayscale Investments LLC continues to transfer hundreds of millions worth of $BTC to Coinbase. This all coincides with investors ditching its $GBTC ETF due to high management fees compared to its competitors.
Investors are preparing for the upcoming uncertainty in the Bitcoin price. One way is through investing in new presale tokens that could generate strong returns, irrespective of the broader market outlook. For instance, the new cloud mining token Bitcoin Minetrix is witnessing high demand in its ICO, raising close to $10 million.
Bitcoin Price Dip – Who Is Looking To Sell?
The Bitcoin price hit the $48.9k mark in the aftermath of the spot Bitcoin ETF approval. However, it has capitulated since, partly due to Grayscale recording over $4.3 billion in outflows since its $GBTC ETF went live. The investment fund transferred over $429 million worth of $BTC on Wednesday itself. Therefore, signaling that the $GBTC dump isn’t slowing down.
After all, Grayscale still has $20.2 billion worth of Bitcoin holdings. Meaning, that they will have to continue to sell if investors continue to divest their $GBTC positions. In a recent interview, Grayscale CEO Michael Sonnenshein defended his 1.5 bps ETF management fees, even as many issuers – including Valkyrie and Fidelity – are currently charging a nominal 0% fee.
Furthermore, the bankrupt crypto exchange FTX holds close to $800 million worth of $GBTC – after already selling close to $110 million worth of it since its approval. If FTX continues to sell its position to pay back its disaffected customers, additional pressure will be put on the Bitcoin price.
Similarly, the hacked crypto exchange Mt. Gox still holds close to 142,000 BTCs. Moreover, that is worth $5.6 billion at today’s Bitcoin price. The deadline for the Mt. Gox Rehabilitation Trustee to complete its base repayment, early lump sum repayment, and intermediate repayment is on 31st October 2024. However, creditors who have already provided the necessary details can start to receive their repayments over the next two months.
The bankrupt crypto lending platform Celsius also owes $2.5 billion in BTC to its customers. According to court filings in August 2022, the platform holds $348 million in Bitcoin and $557 million in wBTC.
Furthermore, the US government holds close to $8 billion worth of Bitcoin holdings. Those funds were seized largely from the Silk Road and the Bitfinex Hack. The government has already sold a significant portion of its BTC holdings over the previous year. Subsequently, they are expected to continue in 2024 as well.
Best Crypto To Buy Now If BTC Price Crashes
The cumulative value of the Bitcoin held by these four entities is over $36 billion. Yet, they could have a massive impact on the BTC price. This could also put a damper on the bullish impact of the upcoming Bitcoin halving.
With the Bitcoin price mired in uncertainty, investors are looking for high-potential alternatives that could generate 10x to 100x returns. If smart-money traders such as Jacob Bury and Michael Wrubel are to be believed, Bitcoin Minetrix fits the bill and could be one of the best new cryptocurrencies to invest in 2024.
Bitcoin Minetrix is a new innovative project with a host of benefits. Specifically, it allows small-scale investors to earn BTC rewards which they have been devoid of for over a decade. The corporate monopoly in the crypto mining industry has increased the capital investment and technical expertise required to run a successful mining operation, sidelining everyday investors.
However, Bitcoin Minetrix mines Bitcoin on behalf of its investors, later distributing the profits in proportion to their initial investment. Users simply need to purchase $BTCMTX tokens and stake them – Minetrix’s stake-to-mine dashboard makes the entire process intuitive. The process is decentralized and transparent, allowing users to unstake and sell their tokens at any point.
In addition to mining rewards, investors can also receive staking rewards from the presale itself, currently at an APY much higher than the industry standard.
In light of the upcoming bull run, the crypto mining industry is set to become profitable. Bitcoin Minetrix can help small-scale investors tap into those profits. As a result, its native cryptocurrency – $BTCMTX – is poised for a strong bull run in 2024. Moreover, it has already raised close to $10 million in its ongoing presale.