July means BTC price volatility
It is not available constantly — as Fintech Zoom reported, the trust operates with periodic closures, which this year have coincided with its buy-in price trading at a discount to spot price.
This negative “GBTC premium” has formed a major talking point in its own right, as invested funds are locked up for a set period and then released, allowing investors to cash out at certain times depending on when they bought in.
A combination of negative premium relative to spot and a large unlocking of funds means that July will be particularly interesting for BTC price action. Previously, such an alignment has meant increased volatility.
July 19 will see the biggest single unlocking day, with 16,000 BTC ($627 million) released.
Bucking a declining trend
For popular pseudonymous trader Loomdart, this nonetheless provides a chance for selling pressure to stabilize afterward, paving the way for BTC bulls to crush longstanding resistance lines.
U guys realise we are already negating gbtc unlocks and after the bulk of them are over theres like… 0 spot btc sellers left right?
— loomdart (@loomdart) June 14, 2021
This would form a refreshing counterpoint to the broadly bearish picture on institutional markets, with open interest in Bitcoin futures way down versus prior to the May price dip to $30,000.
Read here about Ethereum price.
And here about markets data.