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How Bitcoin was impacted from Voyager’s latest actions

2min Read

Bitcoin holds steady amidst market fluctuations and Voyager sell offs. As Grayscale ETF ruling looms, optimism and reduced volatility shape the outlook.

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  • Voyager’s bankruptcy and ongoing asset sales raised concerns about its impact on Bitcoin.
  • Grayscale ETF ruling could offset some of the selling pressure going forward.

In an unexpected turn of events in July 2022, Voyager, a prominent player in the crypto space with assets and liabilities totaling $10 billion, filed for bankruptcy. This decision reverberated across the market, leaving more than 100,000 clients and investors in a state of uncertainty.


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The bankruptcy announcement was closely intertwined with the downfall of Three Arrows Capital (3AC), a notable borrower, which faced a catastrophic outcome due to a high-stakes gamble on Terra Luna’s stablecoin.

The sell-offs continue

Although the bankruptcy filing occurred over a year ago, Voyager’s behavior continues to echo within the crypto landscape. Recent data from lookonchain has shed light on Voyager’s ongoing activities, particularly its asset sales on the popular exchange Coinbase.

Over the span of four days, Voyager liquidated an array of tokens, amassing approximately $63 million. Among the assets sold were:

This consistent offloading of assets by Voyager has prompted speculation about its potential impact on the broader cryptocurrency market, particularly on Bitcoin[BTC]. Concerns were raised about the sheer volume of assets being sold and the potential ripple effects throughout the ecosystem.

Taking a closer look at Bitcoin’s current state provided further insight. At the time of writing, Bitcoin’s price hovered around $29,390, reflecting stability amid the recent market turbulence. The velocity of Bitcoin transactions, however, exhibited a slight decline over the past week, potentially indicating a cautious approach by traders.

Source: Santiment

Grayscale waits in anticipation

The looming Grayscale ETF ruling adds an intriguing dimension to the equation. Grayscale Investments, a major player in the asset management space, pursued its ambition to launch a Bitcoin exchange-traded fund (ETF).

Scott Johnsson of Van Buren Capital tweeted on 11 August that U.S. District Courts usually handle pending cases before new staff comes in, observing that in March 2021 and 2022, 30 out of 32 cases were resolved within 160 days after oral testimony. This also marks 160 days since Grayscale presented its oral arguments against the United States Securities and Exchange Commission on March 7.


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This could suggest that the Grayscale ETF ruling would come sooner than later.

 

The outcome of this legal battle could have far-reaching implications for the acceptance and adoption of Bitcoin.

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Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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