Institutional investors are in the spotlight as they make an upcoming cashout date. This could cause new price volatility for Bitcoin.
As noted by people on Twitter, people are talking about the Grayscale Bitcoin Trust (GBTC) as Bitcoin hovers near $40,000.
GBTC is a company that has a lot of money. It has over $24 billion dollars in its account.
This investment is not available all the time. One of the times it is not available is when the buy-in price trades at a discount to spot price.
This negative GBTC premium is what people talk about. Investors buy in and then they can sell their shares at certain times of the day.
A popular trader, Loomdart, thinks that this chance to sell down prices will stabilize the market. Now is a good time for people who want Bitcoin to come back and break an old resistance line.
U guys realise we are already negating gbtc unlocks and after the bulk of them are over theres like… 0 spot btc sellers left right? — loomdart (@loomdart) June 14, 2021
This would be a good thing because it is different than what most people think. It’s not like the other things that people say.