The liquidation of Grayscale for Genesis payments could have the most negative impact on LINK and other altcoins in the fund.
Will they turn the funds into cash?
Gemini exchange urged Barry Silbert, founder and CEO of Digital Currency Group (DCG), the parent company of Genesis and Grayscale, to take action. Negative scenarios started to be talked about. As it is known, Cameron Winklevoss gave Barry Silbert an ultimatum for the frozen funds of Genesis. Winklevoss said he gave him until January 8th. In addition, Barry Silbert claimed that they also took steps towards the agreement.
However, all these events did not prevent the crypto community from developing theories about what could happen in the worst case scenario. If things go wrong, Grayscale may want to cash out several crypto funds for Genesis payments.
Among those that might be affected are LINK and these 11 altcoins
Grayscale’s most well-known and most valuable fund is the Bitcoin fund GBTC. However, this fund is currently sold at a discount of over 45 percent. The company currently has 632 thousand BTC worth 10 billion dollars, which is the equivalent of this fund. There are also many altcoin funds that do not receive as much attention as Grayscale’s GBTC and Ethereum fund. Prior to BTC and ETH funds, the company may also want to cash out long (more) poorly performing funds. Apart from the mixed funds, the company has the following single funds:
- Basic Attention Token (BAT)
- Bitcoin Cash (BCH)
- Chainlink (LINK)
- Decentraland (MANA)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Left (LEFT)
- Stellar Lumens (XLM)
- Zcash (ZEC)
- Filecoin (FIL)
- Horizon (ZEN)
- Livepeer (LPT)
If a large sale of these funds comes with it, these altcoins may experience significant declines. The biggest fear here is the selling of Bitcoins held for the GBTC fund. As we stated as Kriptokoin.com, the BTCs held by Grayscale are equal to 3.3% of the total market. For Ethereum, this rate is 2.5%. So these two token sales could bring a bigger drop to the market.
Will Bitcoin rise?
Cryptocurrency analyst Dave the Wave has predicted the Bitcoin price drop to take place in 2022. A huge surge awaits for apex crypto now. Based on its logarithmic growth curve (LGC), the analyst predicts that Bitcoin could rise to $160,000 by January 2025. He took to Twitter to share his thoughts on Bitcoin and said he could easily do 10x in the next few years.
Dave the Wave says the LGC model continues to monitor Bitcoin’s price action despite the gloom and pessimism surrounding the crypto markets. He added that the baseline of the pattern will continue to act as support, just as the LGC top served as resistance in the last bull market.