Bitcoin (BTC) may have spent the past month in a certain range due to Grayscale, but that will soon change.
The price premium of the Grayscale Bitcoin Trust (GBTC) fell to the lowest level seen since April 2019, according to data from on-chain analytics resource CryptoQuant.
GBTC shares will be released on Wednesday
Grayscale was frequently on the agenda last year, thanks to record BTC purchases, but despite entries in the trust, BTC / USD did not continue to appreciate.
The purchase premium, which goes up to $ 40 from time to time during its existence, hovers around $ 6.50 at the beginning of February. This usually coincides with the times when the direction of the price changes, while the premium increases when Bitcoin shows big upward movements.
According to an article published in technology magazine Hackernoon at the end of December, this phenomenon is related to the release of GBTC shares subject to lockdown.
When these shares are launched, Bitcoin tends to skyrocket as its customers reinvest their profits into Bitcoin.
Hackernoon said, “The thing to know here is that after these high prices and premiums are realized once the lockdown is over, the price is consolidated. This allows the premium to decrease until the next cycle, ”he summarized.
GBTC shares will be released on February 3rd, which raises expectations that the Bitcoin bull market will continue.