Decision time for many today!
Disclaimer: I'm long in GBTC
Today will be a watershed moment for many in my opinion.
I suspect given the inability of bitcoin to hold any gains last night that today will continue be ugly for GBTC and crypto in general. Understand this is my opinion. I don't claim expertise etc. I have involved in bitcoin for over 2 years and gbtc since the beginning.
*Crypto is down across the board, gbtc will likely continue to drop as now the declining price in bitcoin is causing the premium in GBTC not the usual unpredictable price increase in the stock.
*It's Christmas weekend and a Friday. Typically there's a decent size sell off of gbtc on Fridays. Combine that with Christmas weekend, end of year, etc. it could be an ugly couple of days. The past few days have been the usual realignment of the premium/ pullback after a big gain that many of us have been accustomed to see. What's happening today and next week is something different. Lots of moving parts.
* I suspect crypto market will be off for a few weeks. "My guess" is things won't be back to "normal" (if you can call it that lol) until mid jan. By then the various platforms (Bitfinex, Kraken) will be done with upgrades enabling them handle the demand for accounts, process orders etc. holidays will be over and normal investing will resume again this is my opinion.
*A bigger "longterm" issue is the bitcoin fees associated with transactions. Right now Bitcoin fees are enormous and if they don't come down the ultimate use of bitcoin as a source of payment will never become a reality. It cost me $32 to transfer bitcoin from my account. Ethereum, bitcoin cash, Ripple and litecoin are pennies or less to transfer money. My understanding is the lighting network will lessen bitcoin transaction costs.
*You have public bickering and fronting between bitcoin and bitcoin cash folks.
*Now the word is Goldman Sachs is joining the crypto world (June 2018) so that's a good sign. E*TRADE and Ameritrade have jumped on the futures markets train so t appears that bitcoin is here for a while.
*Everyone needs to assess their needs and risk tolerance today. Those that have been in gbtc for 12 months or more are in a better position than those that just got within a few months (2-3).
Do what is best for you! You should know how gbtc and bitcoin moves and its volatility. You will be tested today and next week. Remember in school you get the lesson then the exam but in life you get the exam first and the lesson later. Make "your" decision and live with it.
