As shown in the chart, the premium paid for GBTC over BTCUSD is consolidating around 14%.
Entry points are to be found optimally when the GBTC premium is below 14%. Of course one must first take into consideration the price and technical indicators of Bitcoin itself.
The premium may also be construed as a Fear and Greed Indicator measuring optimism and pessimism in US stock markets regarding the future price of Bitcoin. If BTCUSD continues to rise over the long weekend we may see the premium paid for GBTC over BTCUSD break out of the consolidation pattern to the upside causing GBTC to rise at a higher percentage then BTCUSD as it often does.
If GBTC is purchased at a high premium the % drop is also higher on average. As previously stated, entry points are to be found optimally when the GBTC premium is below 14% at the moment, sometimes this does not occur for months at a time when BTC in a prolonged uptrend however.
If a Bitcoin ETF that tracks the price more accurately were to be launched the premium would likely collapse as the launch date approaches. It is also likely however that BTCUSD would rise in anticipation of such a launch making up for the diminishing premium.
Entry points are to be found optimally when the GBTC premium is below 14%. Of course one must first take into consideration the price and technical indicators of Bitcoin itself.
The premium may also be construed as a Fear and Greed Indicator measuring optimism and pessimism in US stock markets regarding the future price of Bitcoin. If BTCUSD continues to rise over the long weekend we may see the premium paid for GBTC over BTCUSD break out of the consolidation pattern to the upside causing GBTC to rise at a higher percentage then BTCUSD as it often does.
If GBTC is purchased at a high premium the % drop is also higher on average. As previously stated, entry points are to be found optimally when the GBTC premium is below 14% at the moment, sometimes this does not occur for months at a time when BTC in a prolonged uptrend however.
If a Bitcoin ETF that tracks the price more accurately were to be launched the premium would likely collapse as the launch date approaches. It is also likely however that BTCUSD would rise in anticipation of such a launch making up for the diminishing premium.
