Grayscale Bitcoin Trust (GBTC) Records Attractive Premium as CEO Declares Crypto Spring
Bitcoin has cracked and surpassed the $12,000 mark and is well on its way to $13,000, currently closer to the latter than the former. There is quite a bit of excitement among bulls who are still very optimistic that there is still a lot of room for a bigger surge as we’re only halfway through the year. This bullish sentiment and excitement is also very evident in the Grayscale Bitcoin Trust (GBTC) with its current levels inducing further excitement.
As at June 24, Grayscale’s trade was $14.64 putting investor levels for the price of Bitcoin at $14,640 at a 30 percent premium. This is not too strange an occurrence but it still shows there’s a good chance that Bitcoin’s strong rally that has been going on for a while now is getting a lot more stable.
Before now, the stats were even a bit higher as the GBTC traded with a 40 percent premium at $15. The fact that there is still a lot of investment, with a lot more coming in has given rise to predictions of a significant move in the near future.
Is GBTC the Standard?
It wouldn’t be too wrong to use the GBTC as a sort of gauge to measure how much investors are coming in to reap Bitcoin profits. It would even make sense that heavy Bitcoin investors might want to strongly consider GBTC trade before they make a decision on moving forward. Also, GBTC might just be the light at the end of the tunnel that finally convinces and converts many Bitcoin bears, some of who still think that a return to the dreary crypto winter of last year is still possible.
Furthermore, many institutional investors could possibly rush into the market for fear of missing out (FOMO). Thomas Lee from Fundstrat Global Advisors hinted recently that FOMO must have begun after Bitcoin crossed $10,000. This could suggest that FOMO is one of the reasons Bitcoin is now nearing $ 13,000.
Barry Silbert is Bullish
A while ago before one of Bitcoin’s pullbacks, analysts predicted the retracement and price correction largely because, according to them, FOMO caused the number one coin to be overbought. This sentiment seems to be slowly spreading through again as some people believe it’s currently happening. However, Grayscale founder, Barry Silbert, still remains very bullish.
Last month, Thomas Lee advised the Bitcoin twitter community to begin hodling because Bitcoin usually puts its best foot forward within a period of 10 days which is very easy to miss. According to Lee back in May:
“This week’s strong move on crypto and especially Bitcoin is [a] reminder that BTC historically generates its annual performance in 10 days. Miss those 10 days and average return Is -25%. Reminder to Hodl”.
On some level, this might be a bearish forecast and Silbert also tweeted his agreement with Lee’s post. However, in a recent interview, Silbert was significantly positive about Bitcoin’s chances and couldn’t be more bullish.
According to him:
“We’ve 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.”
Silbert then declared a crypto spring, saying:
“If you look at the price chart for Bitcoin, it looks like perhaps we’re coming out of the crypto winter, and that we’ve entered the crypto spring.”