RATE Group | Bitcoin Bottomed Every Time GBTC Premium Plunged to New Lows; It’s Done it Again
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Bitcoin Bottomed Every Time GBTC Premium Plunged to New Lows; It’s Done it Again

22 Apr Bitcoin Bottomed Every Time GBTC Premium Plunged to New Lows; It’s Done it Again

Posted at 10:43h in Bitcoin News by

At a macro level, the Bitcoin price bottomed every time the premium of Grayscale Bitcoin Trust (GBTC) fell substantially to a local low. After showing a 30 percent premium in March, GBTC markups fell steeply.

bitcoin price GBTC

Historical Bitcoin data shows a steep decline in GBTC premium led to extended ralles (Source: Bitcoin Jack Twitter)

The data coincides with a record high investment into Bitcoin and other major cryptocurrencies like Ethereum from institutions in the first quarter of 2020. Grayscale reported that 88 percent of capital inflows came from institutions from January to March of this year.

Why GBTC premiums occur and how it affects the Bitcoin price

For institutional investors in the likes of hedge, family, and pension funds, Grayscale and its products remain as the most accessible entry into the cryptocurrency market.

The Grayscale Bitcoin Trust, which has more than $2.1 billion in assets under management, enables institutions to purchase Bitcoin without security risks associated with…

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