What does Grayscale’s GBTC fund trading volume have to do with Bitcoin price?
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Answer What does Grayscale’s GBTC fund trading volume have to do with Bitcoin price?
Grayscale’s GBTC Fund is one of the most popular funds geared towards institutional investors that gives them exposure to Bitcoin.
Recently it has been observed that while Bitcoin (BTC) is highly volatile, such funds appear to be underperforming.
Overshadowed by the anticipation of an Ethereum upgrade, the last month saw huge fluctuations in Bitcoin’s price action.
Compared to the above $21,000 price range about 30 days ago, Bitcoin is currently trading at less than $20,000.
GBTC Fund Trading Volume:
GBTC Fund trading volume indicated very low interest from institutional investors.
This is an important metric given that Grayscale is the major player in the inter-institutional Bitcoin market.
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If Bitcoin adoption is to expand further, the Grayscale Fund is an important and crucial indicator.
In August 2022, another major asset manager, Blackrock, launched its own Bitcoin Fund.
The world’s largest asset manager has expanded its services to provide clients with access to the investment opportunity of their choice.
In this context, Grayscale’s low bitcoin volumes are not a great sign of bitcoin and the crypto ecosystem.
Where and when GBTC fund volumes are low, Bitcoin faces the risk of prices falling or continuing to fall.
according to Encoder quantityIf the grayscale volume is low, the Bitcoin pullback will continue.
When the situation is in the opposite direction, the price of bitcoin will rise.
Bitcoin continues to plot a descending curve:
After experiencing a sudden drop in value on Monday, Bitcoin is still in a downtrend curve.
At the time of this writing, the top cryptocurrency is at $19,380, up 4% in the past 24 hours, according to CoinMarketCap.
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On the other hand, experts predict that Bitcoin will not touch the $30,000 range in the near future.
Mike Novogratz, a billionaire cryptocurrency investor, told the market that the market won’t see a massive influx of institutional money in the short term.
He predicted that companies that have already taken positions will not move away from the market.
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Find out the possible reasons behind Bitcoin’s drop to its lowest level in 3 months!
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