A Tweet from prominent analytics firm Glassnode’s official Twitter account states that Grayscale Bitcoin Trust (GBTC) shares are being traded at slightly over 10 per cent discount. In a quickfire response, Peter Schiff (a well-known Bitcoin hater) replied that investors might soon dump GBTC to buy gold since they’re already losing confidence in Bitcoin.
An Almost 12% Decline in Grayscale Premium
According to Glassnode, GBTC premium experienced an almost 12 per cent decline this month which was a further decline from the previous 10.60% a day before. Two days ago, GBTC and Bitcoin’s shares traded at $41.25 and $46.83 per share, respectively. There has even been a further decline in the price of GBTC as of today. Experts consider a slump in an asset premium to be a bearish sign.
Source: Glassnode tweet
Schiff: There Is a Steady Drop in Bitcoin Confidence
Glassnode’s tweet was a chance Peter Schiff couldn’t resist taking a swipe at Bitcoin. The CEO of Euro Pacific Capital made a serious of tweets, part of which was, “someone is selling his GBTC fast and might even be desperate to sell when they can be offered an enormous discount.”
He continued his tweet saying, traditional investors’ loss of confidence in Bitcoin might make them keep selling their GBTC shares and buy gold in its stead. Schiff remarked that he’d shared his concerns about this possibility back in the last month of last year.
Source: Schiff Tweet.
Grayscale’s Crypto Worth Is Nearly $40 Million
According to a tweet from grayscale’s official Twitter handle two days ago, the company has come out categorically to state that it’s manging well over $35 million worth of crypto assets. Before the close of business that day, the firm added more shares to its altcoins stocks, especially Ethereum classic, Bitcoin cash and Litecoin. Using the amount of LTC that this company bought, it is equivalent to nearly 82% of the Litecoin that was mined last month. Before making that Litecoin purchase, it is on record that grayscale recently improved its stake in XLM with $35 million worth.
Contrasting Views On Peter Schiff’s
In his march outlook report, Mike McGlone (one of Bloomberg intelligence experts) states that the negative drop in grayscale premium could mean that the sell-off of Bitcoin from the past week could set up the market for a new run. Yesterday’s indicators show a possibility in the rise of BTC prices to the $50K range.
Mike is also famed for correctly predicting the bullish run in BTC price. The Grayscale premium, a carefully observed indicator in cryptocurrency markets, is the difference between BTC price from crypto exchanges and BTC price based on the share price of GBTC (a publicly-traded stock).
So far, this metric is yet to fail. Grayscale is a unit of Coindesk and digital currency group owners. McGlone was quoted as saying, “possible capitulation selling, the grayscale Bitcoin trust is ending the day at its sharpest-ever discount. Price disparities will be reduced as normal maturation, and rising market depth begins. The extremes towards the end of last month indicate the nascence of Bitcoin.”
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