According to Timothy Peterson, an investor at Cane Island Alternative Advisors, the Bitcoin price could drop to the $6,000 region due to the gap between BTC and GBTC.
Historically, Peterson said that the bitcoin price has followed the trend of the premium of the Grayscale Bitcoin Investment Trust (GBTC), an investment vehicle used by accredited and institutional investors to invest in BTC.
— Timothy Peterson (@nsquaredcrypto) October 11, 2019
In the past month, while the premium of GBTC declined, the bitcoin price has remained relatively stable. Peterson stated that the gap between the premium and BTC could trigger the next downside movement for BTC.
Prediction of 30 percent Drop For Bitcoin
If the Bitcoin price drops to the $6,000 level in the upcoming months as predicted by Peterson, it would indicate a 30 percent decline from the current price at $8,300.
GBTC could be considered an indicator of the short to medium term trend of the bitcoin price because it reflects the demand towards the asset from a different market of investors focused around institutions.
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Author: Joseph Young