GBTC foresaw BTC drop - Trading Journal (11.25.20)
GBTC is the ticker symbol in public traded market for bitcoin for those who trade stocks instead of the actual crypto. GBTC is the closets when it comes to directly investing in BTC without having to hold the crypto or learn about crypto exchanges. What happened today around 2pm est with the GBTC was a significant drop that continued into the closing bell. The trust is based on a portfolio of BTC owned my Grayscale.
GBTC NAV is approximately $10.1, therefore buyers are paying a hefty premium to own some btc. However the focus here is on when GBTC price actually dropped. Around 2:30pm est time was the drop and no news at the time broke to the public. The drop appear to be random but once Asian session of trading crypto went live the price of BTC and multiple altcoins dropped.
Price of BTC slide slowly downward in the beginning of the afternoon but accelerated into the Asian session. News broke out after that President Trump wanted to make new rules that US crypto exchanges would need to follow which relates to requiring identity of all wallet holders be provided to the US government.
Such a news will not be good for traders in US crypto exchanges if it becomes law. Many US exchanges will lose a lot of customers since there are multiple exchanges across the globe for users to trade crypto. Nevertheless the news was likely the reason for the BTC drop.
Yet going back to what was mentioned earlier GBTC dropped before the actual BTC crypto dropped. Could this be utilize as a predictor for future prices on crypto. Note Grayscale has multiple altcoin funds in place and expanding.
All the altcoins had stock price drop prior to actual crypto prices later dropping. Something to be aware of in the future.
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