Bitcoin has been strictly maintaining its position between $30k-$40k for quite a while now. Even though it did break through $30k twice, the price went up that day itself. But now that Grayscale Bitcoin trust’s unlocking dates are nearing, people are sceptical if Bitcoin will be able to maintain its price. So, let’s take a look if Bitcoin could break below $30k when the Grayscale Bitcoin trust unlocks on 17th July.
Could Bitcoin break below $30k?
On 17th July, Grayscale Bitcoin trusts shares worth about 16,000 BTC will unlock. And this could put more pressure on the already weak position of Bitcoin, just above $30k. When investors buy the trust’s shares, they can only sell them after a 6-month lockup period, and this lock-up period is going to end soon. The trust has been operating below premium due to the tumbling prices of cryptocurrency, and this unlock is not going to be a no-show. The price of Bitcoin can take a serious hit, and we might drop to $25k for a brief while.
But we can also note that even though the unlock happens, we might not see a major dump because the trust is below NAV level. This will bring losses for investors, and any thoughtful person might just hold their shares in that case. So, there is a chance that the drop but not be that large, but still, it is best to stay prepared and not make any long trades. Going short during this time will be quite a good idea.
There will definitely be a lot of selling going on, and you might even stay prepared to pick up Bitcoin and others coins at a lower price. Even the analysts from JPMorgan say that the overall signals stay bearish for the unlock.
What should you do?
If you are a long-term investor, this is not much of a question as you will continue to HODL through this. And these short terms ups and downs might not be that big of a deal for you. But if you are into trading, then it is important to proceed with caution. To be on the safe side, it’s best to avoid trading altogether. And if you want to trade, then going short will be a better option. Do note that this is not financial advice.
What are your thoughts on the chance that Bitcoin could break below $30k? And if yes will you be worried or continue to hold and accumulate? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.