A crypto community stakeholder, Steven Lukba, has said the US government’s planned sale of almost $130 million worth of Bitcoin is nothing compared to the outflows from Grayscale Bitcoin Trust Shares ($GBTC) ETF.
A forfeiture notice, issued on January 10, outlined the government’s intention to sell the 2,934 bitcoin seized following the sentencing of Silk Road Xanax drug dealer Ryan Farace and his father, Joseph Farace, for money laundering conspiracy on January 8.
This news stirred apprehensions on social media about the potential impact on Bitcoin prices.
United States government expected to sell $130 million #bitcoin seized from Silk Road.
Uh oh dump incoming? 😂 pic.twitter.com/mi99as8GUU
— Layah Heilpern (@LayahHeilpern) January 25, 2024
Lubka, who is the managing director of the crypto exchange Swan Bitcoin, dismissed concerns about the government’s auction causing a significant decline in Bitcoin (BTC) prices. According to Lubka, the consistent outflow of Grayscale Bitcoin Trust (GBTC) over the past week is four times the government’s sales, so it should not be a cause for worry.
Lubka highlighted that the $GBTC ETF has liquidated over 106,575 BTC, amounting to over $4.2 billion, since its conversion into a spot Bitcoin ETF issuer on January 11.
Despite the stellar performance of other newly approved spot Bitcoin ETFs, GBTC has underperformed in the past days and has faced notable outflows in the past eight days of trading. According to the latest data available, the fund recorded over $394.1 million in outflows.
Despite concerns about Bitcoin’s performance linked to ongoing GBTC massive share sales, the cryptocurrency seems to be undergoing a significant trend reversal. According to CoinMarketCap data, Bitcoin is currently trading at around $40,700.
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