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Grayscale Bitcoin Trust at its Highest Discount Ever Could Signal Price Rise to $100K

The Grayscale Bitcoin Trust (GBTC) has been having its adversest month in its seven-year history. GBTC has dropped to nearly a 12% discount, its highest ever. However, according to one analyst, this could signal Bitcoin’s spike to $100,000 if history repeats itself.

GBTC has been the outright leader in institutional Bitcoin acquisition. It allows these investors to purchase shares in the trust for exposure to Bitcoin, without having to hold their BTC. It currently has $32.4 billion in assets under management, equivalent to 649,130 BTC or 3.09% of all the BTC in supply.

GBTC shares have consistently traded above their net asset price (NAV) since they launched in 2013. As per data from Chicago-based YCharts, they trade 37.78% above their market value on average. In May 2017, they set the record by trading at 132% above their NAV.

However, in the past week, the fortunes have changed for Grayscale. On February 25, it traded at a 3.77% discount for the first time in over five years. Since then, it has been trading at a discount, with March 4 setting the new record at an 11.59% discount.

While many fear that this could be the beginning of the end for Bitcoin’s bull market, one analyst predicts it’s just getting started. Mike McGlone, a senior commodity strategist at Bloomberg Intelligence believes that Bitcoin could double in price as a result of the dip in the GBTC shares prices.

BTCUSD Chart Via TradingViewBitcoin to $100,000

In a recent tweet, McGlone stated, “Grayscale Bitcoin Trust discount may signal march to $100,000.”

Grayscale #Bitcoin Trust Discount May …
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