Market Crash Leads to Grayscale Bitcoin Trust Discount Plunging to an ATL
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
An all-time low was reached last week by Grayscale Bitcoin Trust (GBTC), which has been in the deficit since the beginning of last year.
According to Block’s Data Dashboard, GBTC’s discount fell to -35.26%, the lowest level to date. In other words, the market price of GBTC stock is more than 35% below its net asset value.
On June 17, GBTC hit a -34% low, which was its previous record high. Before the SEC decided whether GBTC could be converted into a spot Bitcoin ETF, the discount shrank.
The regulator denied Grayscale’s request to convert its offering to a spot ETF because it believed the firm had sufficient capabilities to protect against tampering and fraud. In response to the ruling, Grayscale later sued the Securities and Exchange Commission (SEC).
The bottom reached on Friday coincides with a general decline in the value of diversified and traditional markets. According to data from Coinbase on September 26, the price of one Bitcoin (BTC) was $19,173.
The Federal Reserve raised the fed funds rate by 75 basis points the previous week, the largest increase in 15 years. The market had already priced in a 75 bps hike when the decision was made to change the rate to 3.25% from 3%. Nevertheless, the news caused a significant sell-off in the market.
With the correlation between Bitcoin (BTC) and the Nasdaq rising to its highest level since May 2022, the cryptocurrency market has been watching the stock closely lately.
Prior to last week, the market fell after higher inflation figures were announced in the US, which was 8.3% year-on-year.
The post Market Crash Leads to Greyscale Bitcoin Trust Discount Plunging to ATL appeared first on Crypto Academy.