While the selling pressure on Bitcoin, which started after the ETF approval, still continues, the price dropped below $ 41,000.
This decline made investors nervous and increased Bitcoin's weekly losses to over 10%.
At this point, while investors were wondering about the source of the decline and whether it would continue, the famous cryptocurrency analyst Scott Melker, known as The Wolf of Street, said that the latest decline in Bitcoin was caused by Grayscale.
At this point, the analyst pointed out that there was a large outflow from Grayscale Bitcoin Trust (GBTC) shares after the ETF approval, and stated that Grayscale had to liquidate an amount of Bitcoin equivalent to GBTC.
According to the analyst, the decline in BTC was also caused by Grayscale's BTC liquidation.
Melker also stated that Grayscale did not make malicious sales, and that this was due to the nature of ETFs.
“Grayscale does not actively sell Bitcoin.
People are selling GBTC, which means Grayscale must sell an equivalent amount of BTC.
Grayscale is not malicious. “This is just the mechanics of an ETF.”
Bitcoin continues to trade at $41,455 at the time of writing.
*This is not investment advice.