Faced with financial difficulties, Genesis, a cryptocurrency lending company, has sold its Grayscale Bitcoin Trust (GBTC) holdings to buy more Bitcoin (BTC). The decision comes amid a potential bankruptcy and a desire to strengthen the firm’s financial position.
Reports suggest Genesis sold nearly 36 million GBTC shares, using the funds to acquire more BTC. The company took this step as a means of capitalizing on Bitcoin’s recent price increase and to repay outstanding debts.
This decision has led to significant volatility in GBTC’s share price, which is closely linked to Bitcoin’s price movements.
Meanwhile, Bitcoin’s price appreciated by 1.28% and was trading at $67,882.72, at the time of writing.
In other crypto news, as we approach Bitcoin’s fourth halving, large investors known as “whales” are accumulating the cryptocurrency. This trend indicates a growing bullish sentiment around BTC ahead of the halving.
Crypto-analysis firm, QCP Capital, has noticed an increase in BTC spot ETF inflows, indicating a stable market despite the looming halving.
Finally, Anthony Scaramucci projects a substantial upswing for Bitcoin following the halving. He believes that the cryptocurrency could increase six to ten times over, although this would likely take place gradually over time.
Vocabulary List:
- Bankruptcy (noun): A legal process by which a person or business is declared unable to pay debts.
- Volatility (noun): The quality or state of being likely to change suddenlyespecially for the worse.
- Appreciated (verb): To increase in value or price over time.
- Halving (noun): The reduction of the reward given to Bitcoin miners for confirming transactions.
- Bullish (adjective): Having confidence or optimism in the rising prices of assets or markets.
- Inflows (noun): The movement of funds or assets into a particular investment or market.
