Should You Invest in Grayscale Bitcoin Trust (GBTC) Stock?


The Grayscale Bitcoin Trust (GBTC) stock price has been trading sideways in recent days, with Bitcoin stuck at $30,000. GBTC has jumped to $20, the highest level since June of last year, and has seen an increase of 168% from its lowest point in December.

GBTC is the largest fund in the cryptocurrency industry, with over $18.9 billion in assets under management (AUM). Since its inception, the fund has risen by an astonishing 19,200%. GBTC stores its assets in an offline cold wallet, held by Coinbase Custody Trust. This is the same custodian chosen by most companies filing for Bitcoin ETFs.

GBTC creators have also filed to convert the fund into an exchange-traded fund (ETF). In an effort to push this process forward, they have even taken the Securities and Exchange Commission (SEC) to court. If they win, other companies such as Blackrock and Invesco could launch their spot ETFs.

At the moment, GBTC is known for its discount to its assets. The market price per share is $19.81 compared to its holdings per share of $22. This discount has been shrinking in recent weeks.

The next key factor for the GBTC stock price will be Bitcoin’s performance. Currently, Bitcoin is hovering slightly above the $30,000 support level. If Bitcoin rebounds, there is a good chance that the Grayscale Bitcoin Trust will also continue rising.

On the daily chart, the GBTC share price is in a strong bullish trend. It has broken past the $18.53 resistance point, the highest level since April 10th. Moreover, the GBTC share price is now above the 50-day and 100-day exponential moving averages (EMA), with the Relative Strength Index (RSI) just below the overbought level at 69. Volume is decreasing.

Looking ahead, if the GBTC stock price stays above the $18.53 support level, it could continue rising towards the next key resistance at $25. A drop below this support would invalidate the bullish view.

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