By
Bena Ilyas
May 16th, 2024
Grayscale’s move to shift over 4000 BTC to Coinbase follows the steady fall in BTC price today.
According to Arkham Intelligence data, Grayscale has moved almost 4010 Bitcoin (BTC) — worth over $245 million — to Coinbase in the last hour.
🚨 BREAKING 🚨
GRAYSCALE HAS JUST TRANSFERRED 4011 BTC WORTH $245 MILLION TO COINBASE pic.twitter.com/K2jeazRQjD
— Ash Crypto (@Ashcryptoreal) April 30, 2024
The asset shift coincided with a sudden BTC market sentiment shift as BTC price fell from above $61,200 to around $60,600.
Rationale behind the Move
Known for its Grayscale Bitcoin Trust (GBTC) investment product, Grayscale’s move to shift over 4000 BTC to Coinbase follows the steady fall in BTC price today. Reaching as high as $64,600 earlier today, BTC is down roughly $4000 per token — down 2.5% on the day.
Grayscale recently witnessed a dip in its spot Bitcoin ETF dominance, falling to 37% on April 29. Fighting for dominance amongst ten Bitcoin ETFs, the fall suggests competitors in the market are attracting investors away from GBTC.
FOMC Interest Rate Speculation
We are at the precipice of the next Federal Open Market Committee (FOMC) meeting decision. April 30 to May 1 is a key date range for economists and investors as interest rate speculation intensifies.
According to USA TODAY, the Fed is expected to leave short-term interest rates unaltered — lingering between 5.25% to 5.5%. This sustained high-interest rate has a multifaceted impact that has widespread impact across all markets — crypto included.
If the interest rates remain as high as expected, the cost of borrowing and risk appetite reduction are likely to worsen. The ripple effect of this result would impact the crypto market due to its high-risk nature — leading to a shift from greed to fear in market sentiment.
In potential anticipation of this sustained high-interest rate decision by the FOMC, the crypto market has turned red. According to CoinMarketCap, the total market cap has fallen almost 5% over the last 24 hours to $2.21 trillion.