GBTC Premium Rebounds Sharply With Bitcoin (BTC) Price Rise, Whale Buying Continues

By Bhushan Akolkar
Published July 27, 2021 Updated July 27, 2021
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GBTC Premium Rebounds Sharply With Bitcoin (BTC) Price Rise, Whale Buying Continues

By Bhushan Akolkar
Published July 27, 2021 Updated July 27, 2021

On Monday, July 26, the Bitcoin (BTC) price registered a strong recovery on its way to $40,000. This price rebound happened through a short squeeze with over $600 million in short positions getting liquidated in an hour’s time.

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As a result, the Grayscale Bitcoin Trust (GBTC) premium registered a sharp rebound. Moving closer to the zero axes, the GBTC premium recorded a 2-month high of -3.407. As per data from Tiger Trade, GBTC premium jumped over 24% on July 26 during the Eastern U.S. trading hours.

Courtesy: CryptoQuant

On the other hand, on-chain data provider Santiment reported that the ‘millionaire tier’ Bitcoin whale addresses continue accumulation. It notes:

“Bitcoin whales holding between 100 and 10,000 $BTC continue accumulating since the May plummet that shook out many weak hands. These addresses have now accumulated 130,000 more $BTC in the past 5 weeks, and 40,000 more in just the past 10 days”.

Courtesy: Santiment

While there was some improvement in the on-chain metrics of Bitcoin, the world’s largest crypto has yet again failed to continue the momentum.

Bitcoin Take A U-Turn, Enters 5% Correction

On Monday, Bitcoin and the overall crypto market surged on rumors that Amazon will soon facilitate crypto payments by the end of this year. However, later that day, the company confirmed that it has no such plans. Well, this was enough to fizzle out all the excitement within the crypto community.

At press time, Bitcoin is down 4.18% trading at a price of $37,147 with a market cap of $695 billion. The exchanges have started flooding with Bitcoin supplies creating sell-side pressure. Citing data from CryptoQuant, Chinese journalist Colin wu reports:

“Four hours ago, the FTX exchange had a net inflow of 10.32125k Bitcoin, which was the largest single-hour net inflow in the past year. At the same time, Bitcoin reserves in FTX soared to 35.32991k BTC”.

Courtesy: CryptoQuant

The recent volatility in the bitcoin price has put investors in major confusion. It will be interesting to see how BTC performs from here onwards. It is crucial for BTC to break past the $40,000 resistance to confirm the uptrend.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
715 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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