This is a really interesting story, not only that someone buys large quantities of BTC, but that they currently buys more than is actually produced. But the key thing is that they do it of course through OTC, and that it still does not affect the quantities available on the market, so there is no price pumping. This is logically a good thing for the buyer, and I believe that they try in every possible way to keep the price below $10k until they reach the desired quantities.
If you remember last year's pump from $4000 to almost $14k, then there was speculation that Bakkt was to blame for everything, because they were allegedly buy something around 100 000 BTC. If we were to compare these situations, then we could conclude that Grayscale should buy a lot more Bitcoin to significantly affect the price.
Topic: Grayscale Buys 800% More Bitcoin Compared to Q1 2019 - page 3. (Read 995 times)
Wouldn't this have something to do with the high trading volume, according to CMC, Bitcoin has a 24 hour volume of $31.5billion, this equals over 3 million BTC being traded. So it would take a much higher purchase than this (about 19k) to have an immediate impact on the price. The current economic crisis in many countries could also be a limiting factor.
However with the increase in demand and the sentiment of traders going to neutral, we would likely be entering a bullish range soon, and an upward in the next few weeks.
However with the increase in demand and the sentiment of traders going to neutral, we would likely be entering a bullish range soon, and an upward in the next few weeks.
I totally don't see the connection. This is nothing about Grayscale buying bitcoin to manipulate the markets, this is just to show you how much 1 entity buys bitcoin. Theoretically, if everybody held and nobody sold, even if Grayscale were to mine all the bitcoins on their own it would be enough to meet the demand they have. THIS is what the title's trying to say.
Basically its bullish that they bought so much, just like all the billions of dollars that entered the Tether USDT market. However price needs to quickly advance or all this buying is eventually going to stop and price might crash.
It looks like billions have been invested in bitcoin so why aren't we at ATH yet? Obviously there is massive selling going on somewhere, not looking good. So I think shortly we should break $10.5K and break the top of the Xi pimp and then retest the June 2019 highs and quite possibly break those too. If we fail and start heading downwards then its not look good.
Great demand needs to be matched with higher prices... if we don't get this then obviously something isn't right.
It looks like billions have been invested in bitcoin so why aren't we at ATH yet? Obviously there is massive selling going on somewhere, not looking good. So I think shortly we should break $10.5K and break the top of the Xi pimp and then retest the June 2019 highs and quite possibly break those too. If we fail and start heading downwards then its not look good.
Great demand needs to be matched with higher prices... if we don't get this then obviously something isn't right.
I don't see it that way. We see multi-year accumulation bottoms in stock markets all the time. That's probably what is happening with BTC as well. Big accumulators like Grayscale are carving out a sideways market. Eventually once they absorb all the supply in this 2018-2020 range, price will get marked up and retail will start buying it up to and above the ATH.
No big hurry in my eyes. We could stay in this sideways range (maybe back down to $6K) until next year and still go on a bull run afterwards.
Great demand needs to be matched with higher prices... if we don't get this then obviously something isn't right.
Wouldn't this have something to do with the high trading volume, according to CMC, Bitcoin has a 24 hour volume of $31.5billion, this equals over 3 million BTC being traded. So it would take a much higher purchase than this (about 19k) to have an immediate impact on the price. The current economic crisis in many countries could also be a limiting factor.
However with the increase in demand and the sentiment of traders going to neutral, we would likely be entering a bullish range soon, and an upward in the next few weeks.
Basically its bullish that they bought so much, just like all the billions of dollars that entered the Tether USDT market. However price needs to quickly advance or all this buying is eventually going to stop and price might crash.
It looks like billions have been invested in bitcoin so why aren't we at ATH yet? Obviously there is massive selling going on somewhere, not looking good. So I think shortly we should break $10.5K and break the top of the Xi pimp and then retest the June 2019 highs and quite possibly break those too. If we fail and start heading downwards then its not look good.
Great demand needs to be matched with higher prices... if we don't get this then obviously something isn't right.
It looks like billions have been invested in bitcoin so why aren't we at ATH yet? Obviously there is massive selling going on somewhere, not looking good. So I think shortly we should break $10.5K and break the top of the Xi pimp and then retest the June 2019 highs and quite possibly break those too. If we fail and start heading downwards then its not look good.
Great demand needs to be matched with higher prices... if we don't get this then obviously something isn't right.
Does anyone know what their position is on newly minted coins? Is that the only type they'll buy?
Why would that be? At the rate they've accumulated BTC I don't think that's possible. I'm sure they just take the best deal they can get on the OTC market.
@gentlemand. No. Reports about Gray Scale claim that the company purchased more bitcoins than the total mined since the halving. It is assumed that some coins were purchased from other sources that are not exchanges.
Does anyone know what their position is on newly minted coins? Is that the only type they'll buy?
I would guess yes just for the sake of a quiet life which means everyone else in future who wants to get in on the same game will be rather less adventurous and will decree that they too only want to go after virgin coins. I hope for their sake they were buying up when production was more plentiful than it is now.
I would guess yes just for the sake of a quiet life which means everyone else in future who wants to get in on the same game will be rather less adventurous and will decree that they too only want to go after virgin coins. I hope for their sake they were buying up when production was more plentiful than it is now.
These stats are slowly starting to be talked about more. I'm surprised it's taken this long to sink in.
I've often maintained this halving will be the one we remember above all because of figures like this. One company, with one product has demand enough to eat more than the production rate. And there aren't really any other comparable players at the moment.
Imagine if there had been multiple ETF approvals by now. I don't believe there will be an ETF for many years to come but I expect there'll be bypasses, kludges and direct ownership from other players.
Grayscale could be geniuses, they could be goats, but it's a glimpse of a future that not enough people have bothered to think through properly.
I've often maintained this halving will be the one we remember above all because of figures like this. One company, with one product has demand enough to eat more than the production rate. And there aren't really any other comparable players at the moment.
Imagine if there had been multiple ETF approvals by now. I don't believe there will be an ETF for many years to come but I expect there'll be bypasses, kludges and direct ownership from other players.
Grayscale could be geniuses, they could be goats, but it's a glimpse of a future that not enough people have bothered to think through properly.
When an ETF does finally get approved, GBTC will get dropped like yesterday's news. The carry cost will be a small fraction of Grayscale's 2% fees. When that happens, this big GBTC premium over spot will probably become a discount.
At the rate volume is increasing on regulated derivatives and exchanges, I don't know if an ETF will take many years anymore.
Limit the supply & Increase Demand = Much Higher Price
These are probably your last months to buy bitcoin relatively cheaply, I urge everybody to buy what you can afford to right now. Fiat is useless, a great depression is coming, put your money somewhere that can increase in value, not decrease/stagnate.
These are probably your last months to buy bitcoin relatively cheaply, I urge everybody to buy what you can afford to right now. Fiat is useless, a great depression is coming, put your money somewhere that can increase in value, not decrease/stagnate.
These stats are slowly starting to be talked about more. I'm surprised it's taken this long to sink in.
I've often maintained this halving will be the one we remember above all because of figures like this. One company, with one product has demand enough to eat more than the production rate. And there aren't really any other comparable players at the moment.
Imagine if there had been multiple ETF approvals by now. I don't believe there will be an ETF for many years to come but I expect there'll be bypasses, kludges and direct ownership from other players.
Grayscale could be geniuses, they could be goats, but it's a glimpse of a future that not enough people have bothered to think through properly.
I've often maintained this halving will be the one we remember above all because of figures like this. One company, with one product has demand enough to eat more than the production rate. And there aren't really any other comparable players at the moment.
Imagine if there had been multiple ETF approvals by now. I don't believe there will be an ETF for many years to come but I expect there'll be bypasses, kludges and direct ownership from other players.
Grayscale could be geniuses, they could be goats, but it's a glimpse of a future that not enough people have bothered to think through properly.
According to the insight link, over the past 12 months "Total Investment into Grayscale Products: $503.7 million" and their investment was around 171,000,000 so I'm not entirely sure... A lot of the investments do come from hedge funds and I don't know if I'd expect them. To spike up this quarter or last, I know a lot have been seeing problems though with the current economic state....
It might be in one of these reports. I might read them later or tomorrow and post what I find hehe.
https://grayscale.co/insights/
https://grayscale.co/bitcoin-trust/
Are you speculating that it might be only fake news?
https://grayscale.co/insights/
https://grayscale.co/bitcoin-trust/
Are you speculating that it might be only fake news?
They seem to be covered a lot by the press and not much more by anyone else? Is there a quarterly breakdown as all I can find is articles like "grayscale buying more bitcoin than has been mined" which is an obvious clickbaity headline (I'll keep looking and update if I find one)...
This news article is more positive hehehe.
In any case, would it be good to follow Gray Scale's list of altcoins that they are holding? I reckon that they might be indexing and Barry Silbert's ego might cause him to keep supporting the price of those coins hehehe.
According to Kevin Rooke, Grayscale has been buying up a lot of BTC in recent weeks.
So much even that more Bitcoin has been purchased compared to the amount of BTC generated by miners since the block reward halving.
With nearly 19,000 BTC bought by Grayscale, and under 13,000 BTC minted on the network, there is a very intriguing discrepancy.
Read in full https://nulltx.com/grayscale-buys-800-more-bitcoin-compared-to-q1-2019/
In any case, would it be good to follow Gray Scale's list of altcoins that they are holding? I reckon that they might be indexing and Barry Silbert's ego might cause him to keep supporting the price of those coins hehehe.
According to Kevin Rooke, Grayscale has been buying up a lot of BTC in recent weeks.
So much even that more Bitcoin has been purchased compared to the amount of BTC generated by miners since the block reward halving.
With nearly 19,000 BTC bought by Grayscale, and under 13,000 BTC minted on the network, there is a very intriguing discrepancy.
Read in full https://nulltx.com/grayscale-buys-800-more-bitcoin-compared-to-q1-2019/
Jump to: