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Why the drop? News out of china. Nothing to do with "premium".
https://www.google.com/amp/s/techcrunch.com/2017/09/08/bitcoin-price-drops-following-report-that-china-is-going-to-shut-down-local-exchanges/amp/
If you do some background reading you'll see that China doesn't like bitcoin because it hurts the yuan (which the country can manipulate).
Make no mistake this will hurt gbtc since they are responsible for a lot of bitcoin demand, but it should recover nicely. How long? Hard to say.
With other countries adopting bitcoin, it won't permanently damage gbtc.
Oh I'm very happy. lol. I know your just curious and not bashing. I apologize if I came across as accusatory.
The premium is just what it is. It's in demand despite what some think. A lot of folks think that because it's a trust that it's going to be a perfect 1.0 correlation with bitcoin. Nothing is perfectly correlated. Gbtc does move with bitcoin price and the correlation is very significant but not 1.0. That is it doesn't move exactly with bitcoin.
Premium has typically been 60%. Its been 80-85% lately since the word got out on it. At the end of the day the price will reflect supply, demand and expected appreciation (or depreciation if your shorting).
Shorting might seem like a good idea to some but go look at history if prices. It always drops and then takes off with a vengeance. Personally I don't like shorting stocks It's too limiting. Ha ha.
Be patient and do your research before. Listen to all opinions. Read about bitcoin, ethereum and litecoin and ripple etc. see what people are saying about the industry. Invest in actual currency too if you so desire. I've earned a nice nice return on bitcoin, ethereum and litecoins.
What would be the grounds of shutting it down?
It's a trust fund so no financials for them to fake. The other firms that got faulted were do to fraud and misleading investors(being in one industry last month and now claiming to be in a bitcoin related industry this month). Those places get shut down.
Somewhat. There are other reasons related to financial ease of investment etc.
Every stock trades at a premium. It's called forward earnings (p/e ratio). Take a look at tesla. Negative earnings and trading over $350/share.
Gbtc is no different. You invest in future earnings potential. Those that post negatively about premium are focusing on book value per se. That is just looking at asset value bot earnings. Gbtc started off in the $40 range. Was there a "premium" back then? Likely. It's about where do you think the stock is going. If you think it's going up then you buy. If you think it's going down then you sell.
Do you really care if there is a premium ok stock if you can make 10,20,30,40% return in a few months?
I've been in gbtc since it was in the $60 range. I'm not shaken by the recent attempts to bad mouth the stock and its potential. If you're not ready to buy. Just do what I did and watch it for a month and make your decision then. I passed on investing at $40 to invest at $60. In still very happy with my return and confident.
Also this might help
https://seekingalpha.com/article/4100663-gbtc-better-bitcoin
Are you asking about the premium(why the stock price is so high)?
Partial answer is Where else are you going to invest in bitcoin other than buying bitcoin?
Yeah that was weird but as someone point out it was likely swing traders. Who knows. I'm sure there are folks that think it's the beginning of the end. Lol
Bitcoin holding steady in the 4600-4650 range. Friday's are typically sell off days for gbtc so today should be interesting. No panic here.
That's about the only thing that makes sense today. LOL ??
Weird trading day. Gbtc never ceases to surprise. lol.
Can you provide a link?
We'll all be loading up if it hits that low. LoL.
I can see mid to high 600's if bitcoin drops and panic sets in and then it's off to the races.
There is a correlation. It's just not 1.0 correlation. Nothing has a perfect 1.0 correlation. Back in April/May gbtc when you're referring to was a lifetime ago in bitcoin/gbtc.
In any regards. Don't see bitcoin trading above 4K and gbtc trading at $180. Good luck!
$180?? Are you talking about GBTC dropping to $180??? That assumes bitcoin drops to under $1000 a coin.
It's all relative. Today's impact depends on your position. People that have been in gbtc for a while can deal more with the ups and downs. If you just got in a few months ago this could be nerve racking for sure.
I would encourage everyone Long to be just that ....long. If you're short in this and it drops congrats! No need to call people names and say I told you so. Everyone can win in the market.
The Ici ban affects bitcoin only in sentiment for the industry. Supposedly new money is pouring in into bitcoin. As ico's dry up those wanting into the crypto industry will have to go back to traditional coins. Ethereum will bounce back as well. Might take it longer.
Bitcoin is holding up and new money is flowing in. Ethereum is taking the hit on the ico ban in china
I don't know I would use the word crumble. Bitcoin is actually stable. Gbtc made a correction.
Only companies that are that sensitive to bitcoin movement are the ones that draft on bitcoin movement and don't have any real income or fundamentals yet.
It looks like bitcoin is stable and may even jump back out Tuesday. Hard to say one way or the other. Not sure why some think the bottom has fallen out of gbtc and bitcoin. This isn't a sub penny flip. There is actually a fundamental behind this even if some don't think it's a currency yet.
Never know. The correction on Friday may offset the drop in bitcoin price (if that drop in price holds). That was a big correction in gbtc. Last time it dropped big it came back and nearly doubled in price.
Hard to say what the price of gbtc will do. If I had to guess I would say that if bitcoin holds around $4700-5000, you'll see s little consolidation of gbtc before the next run up. Then again, more investors may pour into the market seeing this as a buying opportunity($800) and force the price back up over $1000.
All The major crypto currencies are doing very well. No ones talking about the record set in litecoin or ethereum pushing $400. In the back of my mind I'm wondering if money pour into gbtc next week.
There's some profit taking this weekend in crypto currencies. If it holds it should make for some buying opportunities next week.
Analyst have raised their prediction/forecast to $10k.
Well said. ??
Yep. Been in at well under a $100. You just have to roll with the ups and downs.
Ahhhh. Ok. Not sure it'll get approved. Also don't think it will affect the stock much either. Been in this stock since the beginning. It has its ups and downs. It moved a bit too fast this week and this was expected by those that know and follow this long term.
Bitcoin will be over $5000 by Monday so the rush will be on again.
What happens on oct 9th ???
Gbtc often falls after crazy gains. People taking profits, stock being oversold, some media guru stoking the flames of collapse etc.
GBTC always rebounds. Keep in mind bitcoin is approaching 4800 and may hit 5000 this weekend.
Load up if your long term. If your a flipper or trader do what's best for you. No hate here.
I stand corrected!! LoL. May touch $1000 today
Interesting bid/ask this morning. May have small correction at first if this holds. Opening and first hour should be interesting
Interesting article about you should invest in gbtc despite high premium
https://seekingalpha.com/article/4100663-gbtc-better-bitcoin
This was back in June and the price did drop but it came back with a vengeance.
New major player in bitcoin from Japan coming to states.
https://calvinayre.com/2017/08/29/bitcoin/japanese-bitcoin-exchange-bitflyer-sets-foot-on-us-soil/
There are etfs on the way but they will hybrid etfs where in that they will not be 100% bitcoin. They will likely hold up to 25% bitcoin and the rest will be bitcoin related firms or other investments.
So yes you'll see some money come out of gbtc, but other than the Winklevoss twins etf that got rejected a few months ago there is not going to be a pure bitcoin etf out soon.
Might see $800 today.
Bitcoin will retrace back to the 4400 range. Gotta realize it went up $120-150 on Monday. There's gonna be some pull back but the ceiling has been breached so it's a matter of time before it settles back up that range. Once bitcoin hits $5k. Gbtc will be
$1k per share
"Microsoft and Intel want Bitcoin tech in your Work Place"
https://www.google.com/amp/s/www.engadget.com/amp/2017/08/13/microsoft-and-intel-blockchain-framework/
No news yet. There is talk of options coming early next year I believe. I haven't heard of anything regarding an etf.
Bitcoin cash down to $275. Time will tell about this. Maybe a lot of hoopla for nothing. Not sure bitcoin case running at 8 yet.
Yep. The letter is real. I get weekly announcements from Cory booker who is a sitting congressman. Anytime you write and donate money to your congressmen/woman you get out on their mailing list. This was one letter I got today.