While Bitcoin (BTC) is highly volatile, it appears that the fund market has low confidence in the cryptocurrency. Overshadowed by the prediction of The Ethereum Merge, the last month saw huge fluctuations in BTC price action. Compared to the higher price range of $21,000 around 30 days ago, Bitcoin is currently trading at less than $20,000. Also, the cryptocurrency has a high chance of further depreciation.
Bitcoin volume in grayscale
The fund market size in Grayscale Bitcoin Trust (GBTC) indicated very low interest from institutional investors. This is an important metric given that Grayscale is a major player in the inter-institutional Bitcoin market. If Bitcoin adoption is to expand further, the attraction of Grayscale is a critical factor. In August 2022, another major asset manager, Blackrock, launched a Bitcoin private fund. The world’s largest asset manager has expanded its services to provide clients with access to the investment opportunity of their choice.
In this context, the grayscale low Bitcoin volume is not a great sign of Bitcoin and the crypto ecosystem. When money market volumes are low, Bitcoin faces the risk of prices falling or continuing to fall. according to Encoder quantityThe local pullback condition will continue with BTC if the grayscale volume is low. When the situation is in the opposite direction, the price of bitcoin will rise.
“When volumes are sufficient on their own or have some upside, Bitcoin tends to increase roughly the parabola, or at least increase the range.”
Downward curve to continue?
After witnessing a sudden drop in value on Monday, BTC is still in a downward curve. As of this writing, the cryptocurrency is at $19,330.30, up 2.97% in the past 24 hours, according to price trackers. CoinMarketCap. On the flip side, experts are predicting that BTC will not touch the $30,000 range in the near future. Mike Novogratz, a billionaire cryptocurrency investor, said the market will not see a massive influx of institutional money in the short term. He predicted, however, that companies that have already taken positions will not move away from the market.
When looking at the major crypto assets as a percentage of the total market capitalization, Bitcoin currently has a 39.06% share. Recently, there has been a rise in Ethereum’s dominance, thanks to The Merge event.
Submitted content may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrency. The author or publication assumes no responsibility for your personal financial loss.