• Grayscale’s Bitcoin Trust (GBTC) saw a 96% surge in 2021.
• The Luna crash drove Bitcoin’s value below $20,000 in June 2022.
• A record 69% of Bitcoin’s supply has remained inactive for over a year since the beginning of 2023.
A Year of Growth for Grayscale: GBTC sees 96% surge
Grayscale’s Bitcoin Trust (GBTC) had an incredibly successful 2021, seeing its trading volume and price increase by 96%. This demonstrates that institutional investors continue to view cryptocurrency as an attractive alternative asset class despite market volatility.
Bitcoin trading in a tight range, but reclaims 200 WMA
Although Bitcoin has been trading in a relatively tight range since the start of 2021, it recently reclaimed its 200-week moving average (WMA). This is seen as an important psychological level and could be indicative of future price appreciation.
The Luna collapse impact on Bitcoin one year later
The Luna crash between May and June 2022 caused Bitcoin’s value to dip below $20,000. Since then, however, long-term investors have been accumulating more BTC and now 69% of its circulating supply has remained untouched for at least a year. This suggests that many believe there is still potential for growth going forward.
BlackRock ETF news may have kickstarted Bitcoin accumulation
When BlackRock announced they were considering launching a crypto exchange-traded fund (ETF) earlier this year, it sparked renewed interest from large institutional investors who had previously stayed away from cryptocurrency markets due to regulatory concerns. This likely contributed to the current increase in accumulation activity observed among long-term holders of BTC.
Major repricing event underway in TradFi markets
Recent developments such as the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs), along with increased institutional demand for digital assets, are leading to major repricings across traditional financial markets such as stocks and bonds. These events could further fuel the growth of crypto markets going forward as investors look for alternative investments with higher returns than those offered by traditional markets.