Is Bitcoin Going To Zero As Grayscale Sends 10,000 BTC To Coinbase – Best Altcoins To Invest In Right Now
Investors are fretting over whether Bitcoin might be going to zero, as digital asset management firm Grayscale continues to dump BTC on the market from its Grayscale Bitcoin Trust (GBTC) ETF.
Just on Friday, Grayscale sent another $400 million worth of BTC to Coinbase to be sold, crypto analyst @CryptoTony__ reported.
” Grayscale sent 10,000 $BTC worth $400m to #Coinbase “
Are we going to 0 .. pic.twitter.com/6KWsWPhjWD
— Crypto Tony (@CryptoTony__) January 25, 2024
He questioned whether Bitcoin is going to a price of zero.
Grayscale has been dumping Bitcoin from its GBTC fund following the fund’s conversion to a spot ETF this month.
That reflects investors dumping their GBTC holdings.
Investors have been selling GBTC for two main reasons.
Firstly, many savvy traders bought up a lot of GBTC in 2023 before it was an ETF, and when it was trading at a discount to net asset value.
That essentially meant they got their Bitcoin (in the form of GBTC shares) on sale.
Now that they can redeem GBTC 1:1 for Bitcoin or its cash equivalent, their trade is “won”.
They are now taking profit, and dumping their GBTC holdings.
Others are dumping GBTC because of its high management fee compared to other newly launched spot Bitcoin ETFs, like BlackRocks.
Many investors might also be dumping GBTC because they viewed recent spot ETF approvals as a “sell-the-news” event.
Why Bitcoin Isn’t Going to Zero
Grayscale sell pressure has been a significant factor driving prices lower since spot ETF approvals.
A recent Deutsche Bank survey suggested many retail investors think it will drop back under $20,000.
42% of survey participants said they “anticipate Bitcoin’s disappearance” eventually.
But the likelihood of Bitcoin going to zero is very slim.
For Bitcoin to go to zero, people need to stop using its network and wanting to buy it.
Well, Glassnode data shows network activity continues to trend higher, suggesting increased adoption.
And strong demand for newly launched spot Bitcoin ETFs, such as from BlackRocks, suggests many investors still want Bitcoin in their portfolio.
BlackRock’s iShare Bitcoin Trust (IBIT) already has over $2 billion in assets under management.
Bitcoin’s global notoriety continues to rise.
People are more and more buying into the idea that it is a form of digital gold.
People are also more and more understanding Bitcoin’s crucial decentralized characteristics that make it the perfect bulwark against corrupt, incompetent and authoritarian governments.
Bitcoin is decentralized, censorship-resistant, permissionless and borderless.
The approval of new spot ETFs in the US presents a new demand shock just as the growth rate of BTC supply is about half, delivering a supply shock.
Rate cuts from central banks this year are also expected to act as a headwind for the BTC, as liquidity conditions improve.
A much more likely scenario than Bitcoin going to zero this year is new all-time highs above $69,000.
Crypto Alternatives to Consider
Bitcoin offer’s big potential returns but investors should never want to put all their eggs in one basket.
For those looking to diversify, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of upstart crypto projects to help fund their development.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Indeed, one such project called Meme Kombat, which also secured praise from @CryptoTony__ last year, is amongst their favored presales.
New presale i am bring some awareness too .. Legends at @Meme_Kombat who are an innovative new gaming platform designed for hardcore gamers.
– Doxxed team
– $100,000 raised already
– Passive staking
– AD / NFA / DYOR
– Presale link : https://t.co/TWAEnq5WG0
– TG :… pic.twitter.com/r6xtdbBmeX
— Crypto Tony (@CryptoTony__) September 28, 2023
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
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