Grayscale Bitcoin Trust (GBTC) Trading at 40 Percent Premium; Big Money Coming In

Grayscale Bitcoin Trust (GBTC) Trading at 40 Percent Premium; Big Money Coming In

The Grayscale Bitcoin Trust (GBTC) is trading at a premium, which works out to a Bitcoin price of almost $15,000 indicating that further gains are imminent.


Big Money Coming In Via GBTC

Data from Grayscales recent performance placed it trading at $14.64 as of June 24. At these levels, investors are working with a Bitcoin price of $14,640.

The premium, which amounts to around 30 percent, is not new but has increased significantly as Bitcoin cements its position in the latest three-month-long bull run.

At one point, GBTC traded above $15 at a 40 percent premium, leading to suggestions that substantial upward market moves were still on the horizon.

Big money coming in! one popular online trader summarized on Monday linking to the data.


Proof of FOMO?

As Bitcoinist reported, GBTC has become a yardstick for institutional investor appetite as Bitcoin gains.

Its premium has buoyed analysts looking for the cryptocurrencys definitive return to form after the 2018 bear market, correlating to a popular theory that institutions will ultimately FOMO into Bitcoin.

This fear of missing out should have begun as BTC/USD hit $10,000 last week, according to sources including Fundstrat Global Advisors Tom Lee.

In the event, Bitcoin retook the $11,000 support just 24 hours afterward, something it has since broadly retained as the price hit a 15-month high above $11,350 on Tuesday.


Silbert Proclaims Crypto Spring

While the talk is now turning to concerns that, Bitcoin could be overbought under current conditions, Barry Silbert, founder of Grayscale, remains upbeat about the near-term options.

($20,000) is a magnet, he summarized about Bitcoins price potential on social media before the weekend.

Nevertheless, he agreed with Lees recent analysis suggesting BTC/USD could be making its most decisive move for a while.

This weeks strong move on (cryptocurrency) and especially (Bitcoin) is a reminder $BTC historically generates its annual performance in 10 days. Miss those 10 days and average return is -25%, he wrote.

In an interview with Bloomberg meanwhile, Silbert remained decisively bullish.

Weve been through quite a rollercoaster; the price has gone down 80 percent four times, but in the past four times, the price has hit record highs afterwards, he told the network June 12.

If you look at the price chart for Bitcoin, it looks like perhaps were coming out of the crypto winter, and that weve entered the crypto spring.

What do you think about GBTCs price? Let us know in the comments below!

Images courtesy of Shutterstock, @crypto_goat_

The post Grayscale Bitcoin Trust (GBTC) Trading at 40 Percent Premium; Big Money Coming In appeared first on Bitcoinist.com.

25.06.2019 / 03:40 46
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