Grayscale Experiences A Huge Loss Of $2.1B Within 24 Hours

Grayscale, a major cryptocurrency as well as an investment fund, had recently sent out a tweet through which it had announced that as of yesterday on the 28th of May 2021, the overall volume of its cryptocurrency holdings has now reduced to just over $34.1 billion from the previous amount of $36.2 billion just one day before. Grayscale has thus lost $2.1 billion in cryptocurrency assets over the span of just 24 hours.

Outflows amounting to $2.1 billion

Bybt had provided some key analytics through which it had been routinely observed that the outflows being generated from Grayscale’s respective cryptocurrency trusts have not only been taking place since yesterday or even the past 7 days but have in fact been occurring for over a month now.

As per the data, Bitcoin (BTC), along with some of the major altcoins, were the ones being continuously withdrawn towards the various secondary markets, an action which the investors are technically allowed to perform if the funds have been locked up with Grayscale for a period of 6 or more months.

Furthermore, some of the relatively less popular cryptocurrencies by market cap, namely LPT, LTC BAT, LINK, MANA, and FIL, are in fact managing to hold better for the past 30 days or so.

$40,000 mark seemingly out of reach for BTC

As of the time of this writing, BTC is trading at a price of $35,245, which is indicative of a 2.3% decrease since yesterday. Perhaps nothing can display the extreme volatility prevalent within the cryptocurrency industry more than the fact that the world’s flagship crypto had been trading over the $58,000 mark at the beginning of this month, and it has since decreased by in value by nearly 40%.

Of course, this had been largely due to Tesla’s decision to no longer accepting payments made in BTC, thereby eliminating an important use case for the digital asset. This announcement had come around the time when many were actively discussing the adverse impact that BTC mining was having on the environment and ecosystem, and since then China had additionally also decided to ban BTC mining in the country (which had made up nearly 75% of the world’s overall BTC hash rate).

Most recently, the Bank of Japan’s governor, Haruhiko Kuroda, had questioned the usage of Bitcoin’s ability to act as a means of investment as well as a viable payment method due to the lack of use and settlement cases.