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Grayscale Bitcoin Trust Unlock: What It Means for the Crypto?

As Grayscale is going to unlock its BTC Trust this week, the market has mixed opinions about how it affects the price of Bitcoin.

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The coming week is going to be crucial for the crypto space and particularly Bitcoin, as Grayscale is going to unlock its Bitcoin Trust, and it will unlock almost 40,000 BTC worth about $1.32 billion. The Grayscale Bitcoin Trust has risen to become the world’s largest crypto-asset fund, with over 650,000 BTC in assets, accounting for almost 3% of Bitcoin’s total supply. However, investors who purchase GBTC shares are subject to a six-month lock-in period before being able to sell them.

This news has been doing the rounds for quite some time now in the last few weeks. Investors are worried about how this is going to affect the price of Bitcoin and the entire crypto space as a whole. July 17 is one of the biggest days of the unlock period. Experts are split on how this event will affect Bitcoin; some are concerned about an approaching sell-off, while others are more concerned with a long-term positive outlook.

JP Morgan Analysts Are Bearish Towards the News

It might be a bearish catalyst, according to JP Morgan analysts, because it allows shareholders to sell their shares. Such a huge amount of BTC being sold off in the market will make the price of the crypto come down due to the supply-demand phenomenon. Celsius Network CEO Alex Mashinsky also foresees that funds looking to capitalize on cost differential in the market (arbitrage opportunities) will short Bitcoin and buy GBTC shares at a steep discount. The net result, according to the CEO of the crypto lending platform, is $5 billion in sell stress, which could push Bitcoin below $30,000.

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Statistician Willy Woo commented last week:

“Investors now have more incentive to buy GBTC shares rather than BTC, it diverts some of the buying pressure on BTC spot markets. This is bearish.”

Kraken: Unlock Will Not Have a Direct Impact on BTC

According to a recent report from cryptocurrency exchange Kraken, “market structure suggests that the unlock will not have a material impact on BTC spot markets anytime soon, if at all, as some have claimed.” According to Kraken, the majority of the shares to be unlocked are owned by large institutions that purchased the GBTC shares with BTC to take advantage of the premium-to-net-asset value (NAV) that the shares traded at the time.

Furthermore, these investors are likely to have shorted Bitcoin in futures markets to mitigate the impact of negative price movements in the BTC spot markets.

Shane Ai, who is responsible for product research and development of crypto derivatives at Bybit — a cryptocurrency derivatives exchange, says: 

“The upcoming GBTC unlocks are a function of private placements done six months ago, when premiums to spot were closer to 30%. These trades were likely accompanied by a corresponding BTC short leg, and if anything, the unwinding of these BTC shorts would translate into buying pressure. What’s also different today is the absence of new private placements, thereby reducing potential fresh shorting of spot BTC.”

Kraken goes on to say that institutional investors who tried to arbitrage GBTC’s premium could even keep their GBTC shares instead of selling in the secondary market, allowing them to keep their short positions as well. This would imply that the token is not being sold on the open market.

Investors may also sell their GBTC shares to cover their short positions, resulting in net buying of the token. However, the impact on spot prices may not be felt as quickly as the market expects in either case.

Institutional Investors Likely to Buy Back the Coins

Amber Group, a crypto-financial services firm, predicted that institutional investors who borrowed Bitcoin in early 2021 to take advantage of the trust’s hefty premium will now have to buy back coins in spot markets to pay back liabilities.

However, due to a double-whammy of increased competition and declining enthusiasm in Bitcoin among institutional investors, GBTC shares have been trading at a discount to net asset value (NAV) since early May.

The GBTC Discount

Before February 23, this year, the price difference between GBTC and BTC’s net asset value was always a positive amount — a premium. On June 6, 2017, this premium reached an all-time high of 122.27%. The premium, however, has been converted into a discount since the end of February, reaching an all-time low of -17.86% on May 16. 

Sui Chung, CEO of CF Benchmarks — a Kraken subsidiary stated:

“A negative Grayscale Premium is not a sign that institutional interest in Bitcoin is weakening. On the contrary, it likely speaks to greater choice and enhanced market maturity in the cryptocurrency space.”

The Bottom Line

The cryptocurrency market is known for its unpredictability, so it is hard to predict which way the market will turn. 2021 has already seen an immense bearish trend in the crypto space. Bitcoin appears to be hanging in a bearish manner near the $32,000 level as the greatest unlocking event on July 18 approaches, producing a domino effect on the entire altcoin market. Because the unlock is unlikely to see significant adverse price movement, the price is likely to bounce into higher levels, resulting in a net positive effect for the flagship token.

#Bitcoin #Bitcoin News #Crypto #Crypto News #GBTC #GBTC Shares #GBTC Unlock #Grayscale

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Source: https://www.cryptoknowmics.com/news/grayscale-bitcoin-trust-unlock-what-it-means-for-the-crypto

AI

Nigeria to Launch a Pilot for Its CBDC in October

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Amazon seems determined to maintain its reputation as an innovative company and is looking to experiment with cryptocurrencies through a digital currency payment and blockchain unit.

According to an announcement posted on Thursday, Amazon is looking for a blockchain specialist to lead its Digital Currency and Blockchain strategy.

The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap … You will work closely with teams across Amazon, including AWS, to develop the roadmap, including the customer experience, technical strategy and capabilities as well as the launch strategy.

What Amazon is Looking For

The expert must have at least an MBA or equivalent degree, 10+ years of business or technology experience, team management skills, understanding of data and metrics, and good communication skills.

The corporation did not disclose any salary offer. The person must be based on or willing to move to Seattle, Washington.

Amazon seems to be convinced of the need to innovate in the field of payments and finance. The cryptocurrency and blockchain development team is a sign of the company’s interest in exploring these emerging technologies to offer better financial products.


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According to an email shared by Business Insider, Amazon’s team confirmed its interest in exploring an approach to the world of cryptocurrencies. Still, they did not specify whether it would be through the development of a proprietary currency or through the acceptance of cryptocurrencies as a means of payment:

“We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon … We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”

An Old Relationship With Crypto

Amazon’s interest in the world of cryptocurrencies isn’t new. Back in 2017, it purchased, at least preemptively, a number of domains linking its brand to cryptocurrencies, including amazoncryptocurrency.com, amazoncryptocurrencies.com, and even amazonethereum.com.

However, at the time, Patrick Gauthier told CNBC that the e-commerce giant did not have much interest in cryptocurrencies and had no plans to support crypto payments.

In fact, the Pay With Moon plugin that allowed payments on Amazon with Bitcoin through Lightning Network had to change its business model to instead allow its users to purchase virtual credit cards instead of paying directly on Amazon’s site.

Also, as Cryptopotato reported in February this year, Amazon launched a job offer for a new payments system involving “Digital and Emerging Payments (DEP),” although they did not mention a direct relationship with Bitcoin or any cryptocurrency either.

This time, however, Amazon seems more willing to go public with its casual relationship with cryptos.

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Amazon Wants a Leader For Its Digital Currency and Blockchain Product Unit

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Amazon seems determined to maintain its reputation as an innovative company and is looking to experiment with cryptocurrencies through a digital currency payment and blockchain unit.

According to an announcement posted on Thursday, Amazon is looking for a blockchain specialist to lead its Digital Currency and Blockchain strategy.

The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap … You will work closely with teams across Amazon, including AWS, to develop the roadmap, including the customer experience, technical strategy and capabilities as well as the launch strategy.

What Amazon is Looking For

The expert must have at least an MBA or equivalent degree, 10+ years of business or technology experience, team management skills, understanding of data and metrics, and good communication skills.

The corporation did not disclose any salary offer. The person must be based on or willing to move to Seattle, Washington.

Amazon seems to be convinced of the need to innovate in the field of payments and finance. The cryptocurrency and blockchain development team is a sign of the company’s interest in exploring these emerging technologies to offer better financial products.


ADVERTISEMENT

According to an email shared by Business Insider, Amazon’s team confirmed its interest in exploring an approach to the world of cryptocurrencies. Still, they did not specify whether it would be through the development of a proprietary currency or through the acceptance of cryptocurrencies as a means of payment:

“We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon … We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”

An Old Relationship With Crypto

Amazon’s interest in the world of cryptocurrencies isn’t new. Back in 2017, it purchased, at least preemptively, a number of domains linking its brand to cryptocurrencies, including amazoncryptocurrency.com, amazoncryptocurrencies.com, and even amazonethereum.com.

However, at the time, Patrick Gauthier told CNBC that the e-commerce giant did not have much interest in cryptocurrencies and had no plans to support crypto payments.

In fact, the Pay With Moon plugin that allowed payments on Amazon with Bitcoin through Lightning Network had to change its business model to instead allow its users to purchase virtual credit cards instead of paying directly on Amazon’s site.

Also, as Cryptopotato reported in February this year, Amazon launched a job offer for a new payments system involving “Digital and Emerging Payments (DEP),” although they did not mention a direct relationship with Bitcoin or any cryptocurrency either.

This time, however, Amazon seems more willing to go public with its casual relationship with cryptos.

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AI

Fintech Giant Zip Co to Provide Cryptocurrency Trading Services

Published

on

Amazon seems determined to maintain its reputation as an innovative company and is looking to experiment with cryptocurrencies through a digital currency payment and blockchain unit.

According to an announcement posted on Thursday, Amazon is looking for a blockchain specialist to lead its Digital Currency and Blockchain strategy.

The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap … You will work closely with teams across Amazon, including AWS, to develop the roadmap, including the customer experience, technical strategy and capabilities as well as the launch strategy.

What Amazon is Looking For

The expert must have at least an MBA or equivalent degree, 10+ years of business or technology experience, team management skills, understanding of data and metrics, and good communication skills.

The corporation did not disclose any salary offer. The person must be based on or willing to move to Seattle, Washington.

Amazon seems to be convinced of the need to innovate in the field of payments and finance. The cryptocurrency and blockchain development team is a sign of the company’s interest in exploring these emerging technologies to offer better financial products.


ADVERTISEMENT

According to an email shared by Business Insider, Amazon’s team confirmed its interest in exploring an approach to the world of cryptocurrencies. Still, they did not specify whether it would be through the development of a proprietary currency or through the acceptance of cryptocurrencies as a means of payment:

“We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon … We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”

An Old Relationship With Crypto

Amazon’s interest in the world of cryptocurrencies isn’t new. Back in 2017, it purchased, at least preemptively, a number of domains linking its brand to cryptocurrencies, including amazoncryptocurrency.com, amazoncryptocurrencies.com, and even amazonethereum.com.

However, at the time, Patrick Gauthier told CNBC that the e-commerce giant did not have much interest in cryptocurrencies and had no plans to support crypto payments.

In fact, the Pay With Moon plugin that allowed payments on Amazon with Bitcoin through Lightning Network had to change its business model to instead allow its users to purchase virtual credit cards instead of paying directly on Amazon’s site.

Also, as Cryptopotato reported in February this year, Amazon launched a job offer for a new payments system involving “Digital and Emerging Payments (DEP),” although they did not mention a direct relationship with Bitcoin or any cryptocurrency either.

This time, however, Amazon seems more willing to go public with its casual relationship with cryptos.

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Locked Out of Millions: Couple Can’t Access $5.8M Worth of Ethereum

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Yuki and Art Williams, who purchased 3,000 Ethereum coins back in 2014, can not open their crypto wallet. The family claims that the essential JSON file was never downloaded, and thus they don’t have access to their $5.8 million.

In Search for Help

According to the American media 7news, the Washington DC family Yuki and Art Williams possess 3,000 ETH coins in their crypto wallet. Unfortunately, the wife and husband can only see them and not access the assets. The couple insisted that when they bought the assets in 2014, the JSON file was never downloaded. Art Williams said:

“The instructions were to leave your computer on for an hour and a half and as the progression bar showed it populating the JSON file would appear. Unfortunately for us, it did not appear.”

Calculated in today’s prices, the wallet contains $5.8 million. Mr. Williams told 7news that the Ethereum Foundation promised him to solve the issue and send him a backup JSON file. However, the family is still waiting.

In another attempt to access their funds, the couple e-mailed the Foundation based in Switzerland and showed them proof of purchase and screenshots of the problem. 7news also tried to reach out to the Ethereum Foundation but received no comment.

The last move that the family is yet to make is to hire a law firm that would open a case in court in Switzerland. The attorneys would demand that the Ethereum Foundation grant a JSON file to the desperate couple during the process.


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“Devastating, to say the least. Obviously, that’s life-changing money,” added Mr. Williams.

The Man Who Lost Access to 7,002 BTC

Investing in cryptocurrencies is not risky only because of the volatile nature of the assets. Apart from that, investors need to save and protect their private keys. In case someone loses their private keys, that could lead to an irreversible disaster. Such is the case with Stefan Thomas and his bitcoins worth more than $223 million.

As CryptoPotato reported earlier in the year, the resident of San Francisco produced an educational video called “What is Bitcoin?” for another crypto fan and received 7,002 bitcoins for his services.

However, Thomas didn’t pay much attention to his new holdings as they had a little-to-no value at the time, and he lost the digital keys to the wallet. In the following years, though, BTC’s price exploded, and now the 7,002 coins are worth around $223 million.

The wallet called IronKey allows users ten attempts to guess the password. So far, Thomas has tried eight times to access the funds, but they were all unsuccessful. If he fails ten times, the wallet will be encrypted forever.

“I would just lay in bed and think about it. Then, I would go to the computer with some new strategy, and it wouldn’t work, and I would be desperate again,” the man revealed.

To avoid any of the above, it’s highly recommended that you take crypto security seriously and make sure to always follow these tips.

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