This is definitely a bad week for bitcoin investors. This turned out to be
the worst week for Bitcoin as it took a back slide after almost a year. Now
after fallout, world’s largest cryptocurrency Bitcoin is selling off as
investors rush to exist. Ticker Grayscale Bitcoin Trust (GBTC) dropped to
22% this week which led to the 17% decline in cryptocurrency.
The fall down in Bitcoin is one of the massive premiums which was 3.8 per
cent below the value of its original price at the time of closing on
Thursday. This was an unusual situation for GBTC as it was continually
traded at a premium price to its net asset value since the time of its
launch in 2013. By the end of 2020, the figure rose very fast with 40 per
cent and investors were willing to invest higher prices in Bitcoin and
recorded 692 million in GBTC shares.
But now as the rates of Bitcoin are falling down, investors are now seeking
to find buyers in the secondary market. The cryptocurrency slipped another
0.2 per cent on Friday making it the worst weekly pullback in a year. The
wider Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and other
three cryptocurrencies, is down 19.7 per cent this week.
Seeking this current fallout of the Bitcoin, Nate Geraci, president of the
ETF Store, an advisory firm said, *“the unpleasant truth for GBTC investors
is that competition erodes demand for the product, which can lead to a
collapsing premium or even a discount