- The Grayscale Bitcoin Trust (GBTC) may potentially end its “discount” on the Bitcoin (BTC) price by 2024.
- GBTC has been trading at a lower value than the Bitcoin spot price for a long time, but this could change soon.
- UTXO Management analyst Dylan LeClair noted that GBTC manages over 600,000 Bitcoins and was a major driver of the 2021 Bitcoin bull run.
The Grayscale Bitcoin Trust (GBTC) could potentially eliminate its “discount” on the Bitcoin (BTC) price by 2024. GBTC has been trading at a value lower than the Bitcoin spot price for a prolonged period, but this situation may soon change. UTXO Management analyst Dylan LeClair pointed out that GBTC manages over 600,000 Bitcoins and was a significant force behind the 2021 Bitcoin bull run.
GBTC’s Discount May End Next Year
Grayscale’s court victory against United States regulators on August 29 provided an immediate remedy to the decline in GBTC’s performance. The fund contains over 600,000 BTC and has been trading at a lower price than the Bitcoin spot price, also known as net asset value, since February 2021. This value, once referred to as the GBTC premium, has been negative for over two and a half years, but this could soon change.
GBTC’s Role in Bitcoin’s Bull Run
Dylan LeClair, a senior analyst at digital asset fund UTXO Management, assessed GBTC’s impact on Bitcoin reaching its all-time high by highlighting the size of the assets under management. Meanwhile, market participants examining the effects of Grayscale news on BTC price movement pointed to potential reversals of some key moving averages (MA).
Bitcoin’s Potential Reversal
Among these, the 200-week and 200-day trend lines, which failed to act as support during Bitcoin’s descent to its lowest levels in several months at the beginning of August, are prominent. Data from TradingView, however, showed that BTC/USD struggled to hold both levels, even though the previous daily candle closed above them.
Conclusion
In conclusion, the Grayscale Bitcoin Trust (GBTC) could potentially end its “discount” on the Bitcoin (BTC) price by 2024. GBTC has been trading at a value lower than the Bitcoin spot price for a prolonged period, but this situation may soon change. The role of GBTC in the 2021 Bitcoin bull run and its potential impact on future Bitcoin price movements make it a critical entity to watch in the cryptocurrency market.
