Bitcoin (BTC) investment vehicle Grayscale Bitcoin Trust (GBTC) may eliminate its BTC price “discount” in 2024.
in a X posts August 30, monitoring resources coin glass The so-called “GBTC premium” is expected to return soon.
GBTC Price: From “Hell’s Elevator” to “Heaven’s Stairway”?
Grayscale defeated US regulators in court on Aug. 29, providing an immediate remedy for GBTC’s lackluster performance.
The fund contains more than 600,000 BTC and has been trading at a discount to the spot price of bitcoin, also known as net asset value (NAV), since February 2021.
As a result, what used to be a “GBTC premium” has been negative for two and a half years, but that may soon change.
Sources say the SEC must consider converting GBTC into a bitcoin spot price exchange-traded fund (ETF) on the same terms as other applicants, reducing the “discount” to the lowest since December 2021 level.
It is currently only -17%, less than half of the peak when it was close to 50%, which was once called the “elevator to hell”.
“Expect grayscale GBTC premium to end discount next year,” CoinGlass wrote in subsequent comments.
Dylan LeClair, senior analyst at digital asset fund UTXO Management, noted the size of its assets under management (AUM) and reflected on GBTC’s role in shaping Bitcoin’s rise to its current all-time high.
“Don’t forget how big $GBTC is. They hold over 600,000 BTC and from a flow standpoint they are the biggest driver of the 2021 bull run.” Tell There are X subscribers on August 29th.
“If stocks are marked to market, today’s discount from -26% to -17% equates to 56,000 BTC back to $GBTC AUM.”
BTC price drops as key support level regained
Meanwhile, market participants focused on the impact of the Grayscale news on BTC price action, pointing to potential returns on some key moving averages (MAs).
#bitcoin Grayscale is now withdrawing its 200WMA and 200DMA after the court ruled that it is superior to the SEC. pic.twitter.com/4EIqii92ps
— Philip Swift (@PositiveCrypto) August 30, 2023
Related: ‘100% Bulls Hit’ Bitcoin Metric Predicts BTC Price Floor at $23,000
Chief among these are the 200-week and 200-day trendlines, which failed to act as support during Bitcoin’s drop to multi-month lows in early August.
Data from Cointelegraph Markets Pro and transaction view Still, BTC/USD has struggled to hold on to either level – despite previous daily closes above that level.
Continuing on the topic, popular trader and analyst Rekt Capital reiterated that several MAs remain important recovery targets for bulls.
In an X post, he mentioned the potential bullish invalidation of the Bitcoin double top structure on the weekly time frame.
“This was a huge initial momentum from support around $26,000, which was never breached to fully confirm the double top,” he said as part of his analysis read.
“That said, BTC needs to recapture the bullish moving averages as support for clarity.”
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