- Genesis sold GBTC to acquire BTC amid financial challenges and possible bankruptcy
- Whales were accumulating Bitcoin before the halving
Genesis, a cryptocurrency lending company, has been facing financial challenges and potential bankruptcy for over a year now. As part of its strategy to address these issues, Genesis decided to divest its holdings of Grayscale Bitcoin Trust (GBTC) to acquire more Bitcoin. [BTC]With the aim of strengthening its financial position.
The reason behind Genesis' latest move?
according to Bloomberg According to the report, Genesis sold about 36 million shares of GBTC to raise funds to acquire more BTC. The move is likely driven by a desire to capitalize on the recent rise in Bitcoin prices, as well as raise funds to settle debts with creditors.
Note to the same, @CryptoBattleIn his recent post on X (formerly Twitter), he noted,
“Genesis Trading has taken a big step in the bankruptcy process by converting GBTC shares into 32,041 BTC (yes, you read that right!), worth $2.1 billion over the past three weeks.”
This has resulted in the GBTC share price being subject to significant fluctuations, with fluctuations linked to Bitcoin price movements.
Echoing similar sentiments, @Crypto Patel also added,
“And imagine what? This all happened after Genesis agreed to return about $2 billion to about 232,000 people who used Gemini Earn. Looks like $BTC is the way to go to the moon!”
Following these developments, at the time of writing, Bitcoin was trading at $67,882.72 after rising 1.28% over the past 24 hours.
The Bitcoin halving indicates a bullish outlook
As Bitcoin goes through a consolidation phase, uncertainty looms over its future path. As the fourth Bitcoin halving approaches, whales are accumulating Bitcoin – a sign of bullish sentiment amid supply dynamics.
After seeing the recent surge in optimism surrounding BTC, QCB CapitalThe reputable cryptocurrency analysis firm noted,
“Inflows from Bitcoin ETFs have increased in the last few days (up to +$232 million on Thursday)”
The company went on to note that this large buying of Bitcoin calls, coupled with low leverage and a cautious trader stance, promotes market stability.
Despite these exchanges, Anthony Scaramucci You expect a big rally in Bitcoin before the halving event in April. In fact, it is believed that Bitcoin could rise six to tenfold after the halving since its impact has not been fully priced in. However, he acknowledged that this increase may not happen immediately, but could unfold gradually over time.
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