At a time when Bitcoin (BTC) is highly volatile, the fund market seems to have low confidence in the cryptocurrencies. The last one month, clouded by Spajanje Ethereuma anticipation, saw huge fluctuations in BTC price movement. Compared to the above $21,000 price range around 30 days ago, Bitcoin is currently trading below $20,000. Also, the cryptocurrency stands a significant chance to further drop in value.
Grayscale Bitcoin Volume
The fund market volume of Grayscale Bitcoin Trust (GBTC) indicated very low interest from the institutional investors. This is an important metric considering Grayscale is the leading player in Bitcoin market among institutions. If Bitcoin adoption were to expand further, Grayscale attracting traction is a crucial factor. In August 2022, another big asset manager Blackrock launched the Bitcoin privatno povjerenje. The world’s largest assets manager expanded its services to provide clients with access to their choice of investment opportunity.
In this context, the low Grayscale Bitcoin volumes are not a great sign for Bitcoin and the crypto ecosystem. When there are low fund market volumes, Bitcoin faces the danger of price fall or continuing to fall. According to Crypto Quant, the state of local decline would continue with BTC if Grayscale volume is low. When the situation is the other way round, BTC price would rise.
“When the volumes are sufficient on their own or have some uptrend, Bitcoin tends to increase almost parabolic or at least have a range increase.”
Downward Curve To Continue?
After experiencing a sudden dip in value on Monday, BTC continues to be on a downward curve. As of writing, the top cryptocurrency stands at $19,330.30, up 2.97% in the last 24 hours, according price tracker CoinMarketCap. On the flip side, experts predict BTC will not touch $30,000 range in near future. Billionaire cryptocurrency investor Mike Novogratz recently said the market will not see huge institutional fund flow in short term. However, the companies which already took positions will not move away from the market, he predicted.
When looked at the major cryptoassets by percentage of total market capitalization, Bitcoin currently holds a share of 39.06%. In recent times, there was spike in Ethereum’s dominance, thanks to The Merge event.
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Source: https://coingape.com/grayscale-bitcoin-trust-volume-what-it-means-for-btc-price/