I believe there is more to the Grayscale story than meets the eye. During this period where their inflows are surging, the GBTC premium over spot is also sinking like a stone. In February, that premium was over 30%. Now it's 15%. In my opinion this is less of a story about bullish institutional accumulation and more of a story about institutional arbitrage.
It sucks to be a GBTC holder right now.
Of course, not everything is as ideal as it seems at first glance - behind the whole story there are a lot of small details that you are actually talking about. Bitcoin is not something that can be constantly profited from, at least not for most people - but the fact that Grayscale buys it in such quantities still means something. By the way, do they still continue to buy more BTC?
Grayscale is a good news but not enough good news. It is just one company buying a ton of bitcoin but it is still one company. What would be good is a lot of companies like grayscale, generally wall street type of investment bank sort of stuff would actually be good to actually buy bitcoins.
Another good or maybe positive news is that JPM has started providing banking services for Coinbase and Gemini. As much as a good part of the crypto community does not have a good opinion of banks, it is still the largest US bank and the sixth largest in the world. If large institutions show direct or indirect interest in crypto, then this is a good sign for all current and future investors.
For me, $ 500 is a lot of money, and if bitcoin price is down from $9,900 to $9,300-$9,400, that means for me.
If we say that BTC lost $500 in value, it means that you lose that amount only if you bought BTC for $9900 and sold it for $9400., And only if you sold one whole BTC. If you need to sell for example 0.01 BTC every week, last week you get $99, and today you get $95. So for small amounts it is just few $ which you lose depending on the amount you sell.
