Glassnode tweeted that GBTC – Grayscale Bitcoin Trus – is trading at a nearly 12 percent discount. The famous bitcoin hater Peter Schiff immediately commented on this. He stated that confidence in Bitcoin is waning and investors are selling off GBTC to buy gold.
Grayscale premium falls 11.91%
Popular crypto market analyst Glassnode reports that GBTC’s premium fell 11.92 percent in March, continuing its decline from 10.60 percent a day earlier. On Wednesday, March 3, Bitcoin was trading at $ 46.83 per share, while GBTC was trading at $ 41.25 per share. But to date, the price of the latter has dropped even more.
— glassnode (@glassnode) March 5, 2021
Analysts consider the decline in the premium for the asset to be a bearish sign.
Schiff says Bitcoin trust is dwindling
Peter Schiff, CEO of Euro Pacific Capital, seized the opportunity. He does not miss the chance to damage Bitcoin. In his tweet, Schiff stated that someone is offloading their GBTC. And moreover, he does it quite desperately, since he is ready to sell at such a big discount. “
He also posted a fresh tweet. It indicates that financial institutions may be trying to get rid of GBTC Grayscale. The reason is they are losing confidence in bitcoin and are more likely to go into gold.
Grayscale Holds $ 39.2 Billion Cryptocurrencies
On March 3, Grayscale tweeted that its total crypto assets under management were close to 40 billion. On the same day, the company stocked up on some of the leading altcoins such as Litecoin, Bitcoin Cash and Ethereum Classic. The amount of purchased LTC was 80 percent of all Litecoins mined last month.
Prior to this, Grayscale reportedly acquired XLM for $ 35 million.
How to take Peter Schiff’s words?
Investing in cryptocurrencies is associated with great risks. This statement is not new, but nevertheless, Bitcoin has been growing steadily for more than 10 years. Despite the fact that it has been buried thousands of times, the coin confidently conquers new heights.
Therefore, the words of Peter Schiff are not taken seriously by experienced hodlers. On the contrary, the fact that Grayscale continues to grow in volume amid falling BTC is a good sign. If institutional investors already believe in cryptocurrencies, then everything is in order. As for the fall, they are, unfortunately, inevitable in the crypto market. And the capital of large investors is constantly changing its position depending on the mood in the world. And that’s okay!