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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (169892)	3/25/2021 6:30:19 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217615

hmmmnnn discount is attractive, even as the knife falls bloomberg.com Biggest Bitcoin Fund’s Woes Worsen as Discount Hits Record Katherine Greifeld 25 March 2021, 22:44 GMT+8 Bitcoin’s worst selloff since December is dealing a particularly harsh blow to the biggest fund tracking the cryptocurrency. The $29.4 billion Grayscale Bitcoin Trust (ticker GBTC) has dropped about 20% so far this week, nearly double the decline in the world’s largest cryptocurrency. GBTC closed over 14% below the value of its underlying holdings on Wednesday as a result -- a record discount, according to data compiled by Bloomberg. The dislocation has deepened despite Grayscale Investment LLC parent Digital Currency Group Inc.’s plans to purchase up to $250 million worth of GBTC shares. The GBTC free-fall highlights the extent to which the latest leg of the retail-driven crypto craze is cooling. The trust has persistently traded at a premium to its net asset value since launching, with investors willing to pay up for a piece of Bitcoin as it rockets higher. However, given that GBTC doesn’t allow redemptions -- meaning that trust shares can only be created, not destroyed like in conventional funds -- the number of shares outstanding has ballooned to a record 692 million. With Bitcoin’s price now stalling, that’s created a supply and demand imbalance as accredited investors in the trust seek to offload their shares in the secondary market “GBTC has a fixed supply and acts like a leveraged play on Bitcoin,” Bloomberg Intelligence analyst James Seyffart said. “As price goes down, sentiment goes down, GBTC is going to fall further than Bitcoin. Same thing happens on the way up.” Bitcoin fell for a fifth day on Thursday to a two-week low, its longest losing streak since December. Demand for crypto has sank amid emerging signs that retail traders are retreating from markets, with everything from call options volume to GameStop Inc. shares to the mega-popular Ark Innovation exchange-traded (ticker ARKK) fund faltering. In addition to individual investors stepping back, demand from institutions may be cooling with the debut of several Bitcoin ETFs in Canada. While U.S. regulators have yet to approve the structure, high-profile issuers such as Fidelity Investments have filed plans. “The addition of ETFs in Canada likely pulled away some capital from GBTC,” Seyffart said. “Mainly institutional money, because most retail can’t easily buy a Canadian ETF.” (Updates with Digital Currency Goup’s plans to buy GBTC shares in the second paragraph.) Before it's here, it's on the Bloomberg Terminal. LEARN MORE

To: Julius Wong who wrote (169892)

3/26/2021 9:56:29 AM

From: TobagoJack

Read Replies (1) | Respond to of 217615

FYI

#forecast 015 : Buying the dip

Mar 26

Dear subscribers,

Welcome to The Bitcoin Forecast #015.

My last letter called for a bullish breakout to explore new all-time-highs under strong buying momentum. Unfortunately this did not play out. Barely 48hrs after my forecast, in an unpredictable event, a faulty high magnitude bearish alert was sent to 28,300 traders. Subsequently leverage traders sold down $3b of derivative positions which dumped the price below all-time-high support. The last two weeks has seen quarterly rebalancing by hedge funds putting further bearish pressure on BTC.

Top level summary for 26th March 2021 (current price $53.2k):

As price dropped under the sell pressure of hedge fund rebalancing, last week Bitcoin saw significant “buying the dip” by new long term investors. Coins have been moving to strong holders (without history of selling) at a rate unseen so far in this macro cycle.

Short term: Capital flow into the network is now accelerating, we are very close to a bottom reversal. If it hasn’t happened already, we are only days away. I’m expecting 2-3 weeks of bullish price action where BTC climbs towards the prior all-time-high resistance of $61k.

Long term: Large holders of Bitcoin are still in accumulation mode, under this lens, we’ve not yet passed the halfway point in the main bull run.

All the best, till next time.

-Willy Woo