{"id":262401,"date":"2021-05-29T19:40:33","date_gmt":"2021-05-29T16:40:33","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/grayscale-bitcoin-premium-rebounds-as-btc-price-falls-below-35k-what-does-it-mean\/"},"modified":"2021-05-29T19:40:33","modified_gmt":"2021-05-29T16:40:33","slug":"grayscale-bitcoin-premium-rebounds-as-btc-price-falls-below-35k-what-does-it-mean","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/grayscale-bitcoin-premium-rebounds-as-btc-price-falls-below-35k-what-does-it-mean\/","title":{"rendered":"# Grayscale Bitcoin premium rebounds as BTC price falls below $35K \u2014\u00a0What does it mean?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3da78399739\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3da78399739\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/grayscale-bitcoin-premium-rebounds-as-btc-price-falls-below-35k-what-does-it-mean\/#Enough_with_discounts\" >Enough with discounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/grayscale-bitcoin-premium-rebounds-as-btc-price-falls-below-35k-what-does-it-mean\/#Buying_the_Bitcoin_price_dip\" >Buying the Bitcoin price dip?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Grayscale Bitcoin premium rebounds as BTC price falls below $35K \u2014\u00a0What does it mean? <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) has crashed by around 44% from its all-time high of $64,899, signaling an end to its second-largest bull run that started in March 2020. Many analysts, including those from BiotechValley Insights, see &#8220;<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/article\/4432045-bitcoin-terrible-technicals-bitcoin-could-collapse-back-to-20k-soon\">terrible technicals<\/a>&#8221; in the Bitcoin market, noting that the flagship cryptocurrency could extend its ongoing decline until $20,000.<\/p>\n<p>Nevertheless, Glassnode Insights, a weekly <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter issued by on-chain data analytics service Glassnode, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/surveying-the-may-2021-sell-off\/\">anticipates<\/a> a Bitcoin price recovery in the sessions ahead, based on an on-chain indicator that serves as a metric to gauge institutional interest in the cryptocurrency.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Enough_with_discounts\"><\/span>Enough with discounts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Dubbed as Grayscale Premium, the metric tracks the capital flows into the Grayscale Bitcoin Trust (GBTC) \u2014 the largest investment vehicle for institutional investors looking to gain exposure in the Bitcoin market.<\/p>\n<p>A rising Grayscale Premium shows a higher bitcoin inflow into Grayscale Bitcoin Trust. That prompts GBTC to trade at a premium with respect to the BTC spot price. Conversely, a lowering Grayscale Premium conveys a declining BTC inflow, prompting GBTC to trade at a discount to Bitcoin spot pricing.<\/p>\n<p>The Grayscale Bitcoin Trust attracted more than 50,000 BTC to its reserves throughout January 2021 and the first half of February 2021. GBTC traded at a 10-20% premium in the said period, showing a rising institutional interest.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/2edffd7d-5387-4b80-ba7c-b654f0534c3e.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Grayscale BTC holdings so far in 2021. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Nevertheless, the premium fell below 10% in the first half of February. GBTC started trading at discounts to spot pricing. The same period saw the BTC\/USD spot rate climbing from lower $30,000s to almost $65,000 in April. By then, GBTC premium had flipped below zero.<\/p>\n<p>On May 13, just ahead of the Elon Musk-led Bitcoin market crash on May 19, the GBTC premium reached a peak low of 21.23%. It showed that institutional demand for bitcoin investment products had softened since late February.<\/p>\n<p>But the May 19 price crash improved the Grayscale Premium, noted Glassnode Insights. The metric recovered to -3.8%, suggesting that institutional interest, &#8220;or at the very arbitrage trader conviction,&#8221; rose in tandem with declining Bitcoin spot prices.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/4c63da4e-155d-428b-9391-eda4e4874741.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Grayscale Premium recovering after GBTC at a discount 3 months in a row. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>The Canadian Purpose Bitcoin ETF underwent a similar discounting trajectory, witnessing consistent capital inflows through late April and early May and outflows later in a sign of weakening institutional demand. Glassnode noted:<\/p>\n<blockquote><p>&#8220;However, similar to GBTC, demand flows <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be recovering meaningfully in following the price correction with inflows back on the rise as of late-May.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Buying_the_Bitcoin_price_dip\"><\/span>Buying the Bitcoin price dip?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The contrast between lower Bitcoin spot rates and recovering GBTC prices conveyed that institutions have not outright abandoned the crypto market. Instead, it shows that the sell-off has motivated investors to gain exposure in both Grayscale Bitcoin Trust and Canadian Purpose Bitcoin ETF. Glassnode wrote:<\/p>\n<blockquote><p>&#8220;Institutional products GBTC and the Purpose ETF are showing signs of recovery despite collapsing prices providing early signs of renewed institutional interest.&#8221;<\/p><\/blockquote>\n<p>The analytics portal also referred to metrics that showed that the majority of sellers in the latest BTC price run-down appeared to be short-term holders. Meanwhile, long-term holders bought the price dip &#8220;with conviction.&#8221;<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/grayscale-bitcoin-premium-rebounds-as-btc-price-falls-below-35k-what-does-it-mean\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Grayscale Bitcoin premium rebounds as BTC price falls below $35K \u2014\u00a0What does it mean? &#8221; Bitcoin (BTC) has crashed by around 44% from its all-time high of $64,899, signaling an end to its second-largest bull run that started in March 2020. Many analysts, including those from BiotechValley Insights, see &#8220;terrible technicals&#8221; in the Bitcoin&#8230;<\/p>\n","protected":false},"author":1,"featured_media":262402,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvNDE1MDk1YzItODZjNi00YjAxLWEyMDMtMDBiMGQzMjZkMTJlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81951,74982,76550,74939,75164,22974,73785],"class_list":["post-262401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-analysis","tag-btc-markets","tag-grayscale","tag-market-analysis","tag-price-analysis","tag-canada","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/262401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=262401"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/262401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/262402"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=262401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=262401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=262401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}