GBTC ‘elevator to hell’ sees Bitcoin spot price approach 100% premium

Bitcoin (BTC) investment vehicle, the Grayscale Bitcoin Trust (GBTC), is trading close to 50% below the BTC price on spot markets.Data from on-chain analytics platform Coinglass confirms that on Dec. 8, GBTC shares hit a new record low of -47.2% against BTC/USD.GBTC troubles pile up post-FTXIn the latest bout of nerves to hit the Bitcoin industry since the fall of FTX, GBTC is nearing half-price versus the price of Bitcoin.The largest institutional Bitcoin investment vehicle, with assets worth around $10 billion, GBTC has faced numerous challenges in recent years. The price of its shares previously traded higher than BTC/USD, resulting in what was called the “GBTC premium.” Since 2021, however, that premium has turned negative, but the resulting “discount” has done little to lure additional institutional interest.As Cointelegraph reported, beyond a few key exceptions such as ARK Invest, GBTC is languishing as operator Grayscale, part of Digital Currency Group (DCG), attempts to convert it to an exchange-traded fund (ETF) — suing United States regulators standing in its way.Amid the legal battle, FTX has sparked liquidity problems elsewhere in the DCG empire, and this has led to doubts over Grayscale and GBTC. Grayscale declining to show proof of its BTC reserves last month, despite custodian Coinbase confirming its assets were secure, added to the tensions.“Grayscale is in some real trouble if they have to reveal where all the Bitcoins are that back the GBTC,” popular commented Bitfinex’ed wrote in part of a Twitter discussion on the topic this week.This week, things became even worse, as Grayscale faced a lawsuit from investor Fir Tree over what it calls “shareholder-unfriendly actions.”GBTC premium vs. asset holdings vs. BTC/USD chart. Source: CoinglassMeanwhile, overall interest in crypto ETFs has plummeted this year, separate data suggests.Woo: Problems “partly bullish” for BitcoinWith that, the GBTC premium, having barely recovered from previous record lows, sank even further versus Bitcoin, known as its relationship to net asset value (NAV).Related: Why is Bitcoin price down today?“$GBTC discount to bitcoin NAV is on the express elevator to hell. = > sentiment = bearish,” Timothy Peterson, investment manager at Cane Island Alternative Advisors, summarized.Others lamented the slow pace of change in the U.S. as fueling the fire.“Quite a lot of the pain this year would have been avoided if GBTC had been made into an ETF SEC keeping everyone safe!” investor and entrepreneur Alistair Milne reacted, echoing popular sentiment from recent weeks.Willy Woo, creator of statistics resource Woobull, meanwhile argued that the impact of fading GBTC exposure was not necessarily a straight negative for BTC price strength.“The GBTC / DCG / Genesis fears is a bearish cloud hanging over the market. But counterintuitively part of the impact has been bullish for BTC price,” he tweeted on Dec. 5. “37.5% of people who sold GBTC bought spot BTC to take custody. Selling GBTC does not impact BTC price, buying spot does.”An additional Twitter survey quizzed the platform’s users who notionally own GBTC over their motives to sell.Willy Woo Twitter survey (screenshot). Source: Willy Woo/ TwitterThe views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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BTC price hits new December low as Bitcoin dips 2% with Asia stocks

Bitcoin (BTC) hit new month-to-date lows on Dec. 7 as Asian markets fell during trading.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView$16,500 stands as support as BTC price wobblesData from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to lows of $16,736 on Bitstamp, a level not seen since Nov. 30.The pair thus began to erase the ground it had reclaimed into the November monthly close, showing heavy influence from Asian equities prior to the Wall Street open.The mood was nervous on the day, with Hong Kong’s Hang Seng index down 3.2% at the time of writing and the Nikkei 225 and Shanghai Composite Index 0.7% and 0.4% lower, respectively.“Welp, there we go with Bitcoin, couldn’t hold support and started falling down, just like indices have been showing weakness,” Michaël van de Poppe, founder and CEO of trading firm Eight, reacted. “Have been patiently waiting for a long and will continue to do so. Most likely; longing around $16.5K is valid or reclaim $16.9K.”Popular Twitter trading account Profit Blue meanwhile entertained the possibility of steeper BTC price declines to come.For fellow trader Elizy, it was meanwhile time to wait for the reemergence of $16,500 for a long scalp trade.A similarly optimistic take came from Bull, who eyed a potential reclaim of $17,000 next on shorter timeframes.Earlier, a scan of the Binance order book from on-chain monitoring resource Material Indicators had revealed mounting support at $16,500.BTC/USD order book data (Binance). Source: Material Indicators/ TwitterCPI already in focusWith Bitcoin markets still calm compared to November’s intense volatility, analysts continued to look for upcoming macro cues.Related: ‘Imminent’ crash for stocks? 5 things to know in Bitcoin this weekThese were firmly in the form of next week’s United States Consumer Price Index (CPI) print, due Dec. 13.For trading firm QCP Capital, there was reason to believe that the numbers might favor risk assets when it comes to declining inflation.”With retailers struggling with inventory all year due to the consumer slowdown, it is likely they have used Black Friday/Cyber Monday to offer eye-popping discounts in order to clear stock, which would factor into the November CPI print released next week,” it postulated in its latest market update on Dec. 5.QCP remained wary on stocks’ potential to put in a sustained rally, however, with a breakdown causing further pain for correlated cryptoassets.”While many are saying that BTC and ETH are lagging equities and should play catch up, rather we see it as equities having overshot fundamentals and will soon be reeled back,” it wrote.The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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