Bitcoin prices continue to remain under pressure and traders are looking from 16,000 BTC worth of GBTC shares unlocking in July.

For clarity, Grayscale Bitcoin Trust (GBTC) trades on the over-the-counter (OTC) market and GBTC boasts significant liquidity and many times trades at a premium.

There is an expectation that a potential sell-off of shares which is tied to a multi-billion dollar Bitcoin (BTC) investment fund might crash the spot prices and will trigger the interests of the analysts in the space.

It is important to note that Grayscale’s premium remained negative for several months.  There is an argument about Grayscale Bitcoin Trust, that the digital assets manager permits institutional investors to get indirect exposure to the Bitcoin market by way it their product, which is GBTC.

Investors buy GBTC shares directly through Grayscale by daily private placements by paying in either Bitcoin or the USD.

Investors well know they can sell their GBTC shares only after a six-month lockup period in secondary markets to other parties. Thus, they are doing this in an expectation to liquidate it at a premium when the market price at the time of sales crosses more than the native asset value (NAV).

On the other hand, when looking at the liquidating GBTC shares at the time when the market price has dipped below the NAV brings in losses to its. Therefore, if investors choose to dump their GBTC holdings, they will be doing it do avoid financial casualty.

Strategists at JPMorgan, have to state that accredited investors will be selling at least a part of their GBTC holdings after the July unlocking period, eventually weighing further during the ongoing Bitcoin market downtrend.

Several of them are not willing to give up on their negative attitude towards Bitcoin or the cryptocurrency space.  Smaller corrections and improvement in price does not trigger confidence in those who are already negative about Bitcoin.  Those who are negative continue to be bearish despite the price improvements seen in the market.

There is an expectation that lot of investors will be flushed out of the market in the month of July.  Eventually, there is an expectation that July will opening up both volatility and bullish potential to break through new all-time highs.

There is a lot of debate going on about whether the BTC price is correlated to the Grayscale unlock dates.  This is because, during December 2020, Grayscale Bitcoin Trust attracted inflows of $2 billion, followed by $1.7 billion in January! The reality will unfold soon.