What does it mean for the BTC price?
At a time when Bitcoin (BTC) is highly volatile, the stock market seems to have low confidence in the cryptocurrencies. The last month, overshadowed by the anticipation of The Ethereum Merge, saw large fluctuations in the BTC price movement. Compared to the above $21,000 price range around 30 days ago, Bitcoin is currently trading below $20,000. Moreover, the cryptocurrency has a significant chance of further depreciation.
Grayscale Bitcoin volume
The stock market volume of Grayscale Bitcoin Trust (GBTC) indicated very low interest from institutional investors. This is an important calculation considering that Grayscale is the leading player in the Bitcoin market among institutions. If Bitcoin adoption were to expand further, Grayscale attracting traction is a crucial factor. In August 2022, another major asset manager launched the Blackrock Bitcoin private trust. The world’s largest asset manager expanded its services to give clients access to their choice of investment opportunity.
In this context, the low Grayscale Bitcoin volumes are not a good sign for Bitcoin and the crypto ecosystem. When there are low stock market volumes, Bitcoin faces the danger of falling or continuing to fall. According to Crypto Quant, the state of local decline will continue with BTC if the grayscale volume is low. When the situation is reversed, the BTC price will rise.
“When the volumes are sufficient on their own or have an upward trend, Bitcoin tends to increase almost parabolically or at least have a range increase.”
Downward curve to continue?
After experiencing a sudden drop in value on Monday, BTC continues to be on a downward curve. At the time of writing, the top cryptocurrency stands at $19,330.30, up 2.97% in the last 24 hours, according to price tracker CoinMarketCap. On the flip side, experts predict that BTC will not touch $30,000 in the near future. Billionaire cryptocurrency investor Mike Novogratz recently said that the market will not see large institutional fund flows in the near term. However, the companies that already took positions will not move away from the market, he predicted.
When looking at the main crypto assets as a percentage of total market capitalization, Bitcoin currently has a share of 39.06%. In recent times, there has been a peak in Ethereum’s dominance, thanks to The Merge event.
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
