• Wed. Nov 29th, 2023

Grayscale Faces A Loss Of $2.1B In Cryptocurrencies Within One Day

Phillip Seefeldt

ByPhillip Seefeldt

May 30, 2021

Grayscale, a large investment fund and a subsidiary of the Digital Currency Group of Barry Silbert, announced in a tweet on the 28th of May that the size of its digital assets holdings has reduced tremendously from $36.2 billion to $34.1 billion in just 24 hours.

Grayscale Experienced a $2.1 Billion Outflows in Crypto

Grayscale Investments mentioned the tweet as an update on the Net AUM (Asset Under Management) that their total holdings are currently $34.1 billion, which is about $2.1 billion lower than the previous day (May 27) announcement of $36.2 Billion without selling off any asset.

Data released in an analytics platform, ByBt.com, revealed that the reduction in the holding of the crypto trusts of the Grayscale Investment did not begin in the last 24 hours or even in the past weeks, but the outflows have begun since last month.

According to the Data table released, it is majorly the primary altcoins and Bitcoin shared that have been transferred to the secondary markets, of which the investors are permitted to do so only after locking their funds with Grayscale Trust for six months.

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Based on the information from the data on a 30-day range, the recently added tokens are holding better. These tokens include BAT, FIL, LINK, LPT, and MANA, as well as Litecoin.

BTC Failed to Rise to $40,000

The foremost and leading digital asset has dropped about 38% after a freefall from the peak of about $58,000 on the 1st of May to the current price level of $36,140 as at the time of compiling this article.

This freefall was triggered by diverse criticism and factors, including the criticism that ensued on the carbon footprint of the asset mining operation that started from series of tweets from the Tesla CEO, Elon Musk where he started by announcing that his automobile company will stop accepting Bitcoin as a form of payments for its electric cars.

Following that, the Chinese government added that the activities of the crypto miners in the country would be reviewed for the same reason and then warn the financial institutions in the country to be careful of their dealings with crypto after reaffirming their stance on cryptocurrencies.

The most recent contribution to the fall was the head of the Central Bank of Japan joining the loud chorus of other central bank heads to slam BTC for its volatility.

Phillip Seefeldt

Phillip Seefeldt

Phillip Seefeldt is a skilled and perceptive news writer known for his comprehensive analysis and engaging writing style. With a commitment to accuracy and a deep understanding of current affairs, his articles provide readers with insightful perspectives and thought-provoking insights.

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