Bitcoin Price May Surge as Grayscale Sets to Unlock Fund Tomorrow
● Grayscale trust ready to release funds tomorrow
● The anticipation of the release is causing a build-up on the bull’s side
● However, Hackernoon reports explained that following the unlocking of the fund, the BTC price would consolidate.
● Hackernoon expects the side-way movement of BTC to continue until the next unlocking, as premium will continue to shrink.
Although bitcoin has not been in the news for some time now, it probably used to due to its consolidating price. However, very soon, Bitcoin is set for another ripple as it prepares to soar once again. The news of fund release by grayscale tomorrow is getting the bulls agitated and likely to set them running once it’s released. Ever since Bitcoin made a massive rise to $42 000, it has been consolidating near $30,000. However, the news release tomorrow may once again set them on a course to the top.
Bitcoin Prepares to Rally as Grayscale Plans Fund Release Tomorrow
One of the buzz surrounding Bitcoin is institutional investors’ interest in the cryptocurrency as an alternative to gold. As a result, the recent upswing of bitcoin has been due to the activities of institutional investors. They are the ones responsible for the massive rise of BTC. A chief gauge in determining the interests of these institutional players is through Grayscale Bitcoin Trust. This means that a good measure of BTC price and institutional involvement is Grayscale’s Bitcoin Trust (BGTC). The trust fund has been showing strength lately and may be prepared to rise again.
Since the beginning of the new month, the Bitcoin trust premium is at about $6.50 – a drop from its previous high at $40. Generally, large premiums cause the price of Bitcoin to drop and vice versa. This is because Grayscale Bitcoin Trust sells its shares and buys up bitcoin with the profit. However, as relayed by Hackernoon in an article, the soon-to-be rise in BTC price is presumably linked with the release of GBTC shares that were previously locked up.
As a result, the price of Bitcoin will spike once the funds are released. This is because customers will make use of their profit for BTC purchases.
What Happens Next After Fund Release?
Harkertoon further explained that the price surge that BTC will experience once the funds have been released is momentary. Summarily, once the high price and premiums are achieved, the price will continue with its previous sideways movement. The article also explained that premiums would continue to shrink until the next unlocking.
Regardless, the anticipation of funds to be released charges the bulls as they ready themselves for an upswing. While this move will be short-lived, Harkertoon explained that it expects premiums to “keep shrinking until the next unlocking.”
Final Thoughts
With the heightened interest in stocks, people are rethinking the traditional stock market and offering trading platforms. Furthermore, Institutional investors are already showing interest in bitcoin to replace traditional approaches of investments. Hence, people are now, more than ever, turning to more decentralized methods of finance.
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