When writing the article, the price of Bitcoin is trying to stay above $37,500, but the trading volume is low. Due to the holiday in the US, it is expected that the volume will remain low in the crypto market until Monday. If the bulls take advantage of this situation, the opening of the $38,000 resistance in the next few hours could be surprising.
After a long time, GBTC’s negative premium dropped to -9.77%. The decrease in the single-digit negative premium is due to the increase in demand for GBTC. The reason for the increase in demand is the belief of investors that the negative premium will disappear with an ETF approval. If the SEC allows GBTC to convert to an ETF, investors can eliminate the negative premium and make a profit of approximately 10%.
While GBTC sounds the bear alarm for all cryptocurrencies, it can trigger much larger movements in the coming weeks. For example, if it turns positive and institutional inflows strengthen, investors’ risk appetite will increase further. As a result, it is expected that trillion-dollar asset managers will stock BTC with ETF approval. This means that billions of dollars in supply will move out of exchanges and into Coinbase custody wallets (custodians are partnering with Coinbase for custody services).
When there is limited supply, especially with ETF motivation, price increases are likely.
On November 18, daily active addresses fell below 900,000, but on November 20, they exceeded 1 million. Investors who sensed the volatility took action, and we already know what happened the next day. The Binance settlement rumor came true, and the reason for this movement became clear.
In the last 30 days, the group that increased their Bitcoin holdings the most was the ones holding between 0.001 and 0.01 BTC, showing a growth of 5.88%. At the same time, there was approximately a 1% decrease in addresses holding between 10,000 and 100,000 BTC. While small investors tend to accumulate, some large investors saw this process as an opportunity to make a profit.