Research: Grayscale Investments to Control 1% BTC

Looks like this large player see new possibilities in the crypto market fall
06 December 2018   545

2018 can already be considered one of the worst for the cryptocurrency market, however some large players did not fail to take advantage of falling prices to increase the size of their assets. One of them was Grayscale Investments, which included Bitcoin Fund Grayscale Bitcoin Investment Trust (GBTC) at the beginning of December, controlled more than 200,000 BTC, Bitcoinist writes, citing a study of Diar.

As noted, 17.4 million bitcoins are currently released, which means that GBTC, on behalf of its investors, holds about 1% of the entire issue. This also puts Grayscale at the top of the list of institutional cryptocurrency investments.

At the same time, Barry Silbert’s part of the Digital Currency Group is to accumulate additional bitcoins on a monthly basis. Speaking as a cryptocurrency holder for its clients, GBTC earns 2% in the form of an annual commission on the amount of savings, so this tactic from a business perspective is definitely justified.

At the same time, the fall in Bitcoin prices in 2018 also means that the value of GBTC-controlled assets in dollar terms is decreasing. At the beginning of December, this figure was $ 826 million - the lowest figure for the entire year.

However, Bitcoin is not the only cryptocurrency to which large investors turned when the market fell. In the same study, Diar said that in the first 11 months of 2018 more coins appeared in the wallets actively trading Ethereum whales than in any other period in the history of this cryptocurrency. So, at the end of November, the large holders of Ethereum had 80% more coins than in January.

Bitcoin to Rise Above Intrinsic Value, - JPMorgan

Analysts came to this conclusion considering the cryptocurrency as a commodity and taking the “cost of production” as a basis
20 May 2019   102

The new wave of Bitcoin price growth observed in recent weeks largely resembles the patterns of 2017 and 2018, when the rapid rise of cryptocurrency was followed by a sharp decline in quotations. About this last week in a note to investors wrote a strategic department JPMorgan, reports Bloomberg.

Also, according to analysts of the bank, with the latest increase in bitcoin rose above its "intrinsic value".

They came to this conclusion considering the cryptocurrency as a commodity and taking the “cost of production” as a basis - this includes computing power, electricity costs and energy efficiency of mining equipment.

Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.
 

JPMorgan Chase & Co Analysts

Bitcoin Market Price And Intrinsic Value
Bitcoin Market Price And Intrinsic Value

Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.
 

JPMorgan Chase & Co Analysts

The past week was marked by a steady increase in Bitcoin. So, on May 16, the price of the first cryptocurrency updated the maximum in 2019 at $ 8,319, but could not hold this level, after which a correction began, which deteriorated sharply when an unknown trader realized the sale of 5,000 BTC at $ 6200 on the Bitstamp exchange.