The Grayscale Effect
Within just 48 hours of Grayscale re-entering the crypto game for new investors on January 13, Bitcoin decided it was time to party—surging nearly 20%. This brought the price tantalizingly close to the $40,000 threshold, meaning Bitcoin enthusiasts probably had a good reason to consider throwing some confetti.
Grayscale’s BTC Buying Spree
In this exciting window, Grayscale was not merely a spectator but an active participant, adding a hefty 4,618 BTC to its portfolio, translating to a staggering $182 million. With their last quarterly haul of $3.3 billion—mostly in Bitcoin—Grayscale’s crypto treasure chest now sits at a bulging $27.6 billion. If only the treasure was buried on a digital island!
Crypto Market on a Bullish Roller Coaster
Bitcoin isn’t hogging all the attention. Since January 13, the entire crypto market capitalized on the hype and added a jaw-dropping $137 billion, pushing past the $1 trillion market cap. It’s like every investor at the party suddenly multiplied their drinks!
Liquidity Woes for Exchanges
But wait, it’s not all champagne and confetti. As Bitcoin’s popularity surges, the supply gets slimmer. Major players like eToro recently warned users of impending liquidity problems, potentially limiting margin trading and buying options. You can almost hear the collective gasp from traders at the bar.
The Supply Crunch
Since Bitcoin’s halving last year, daily mining yields about 900 BTC, but here’s the kicker: only a third of that is actually being sent to exchanges! Grayscale has snatched up around 224,930 Bitcoin since then, averaging more than 1,200 BTC per day. It’s a severe case of FOMO in the crypto world—fear of missing out on available assets.
Ethereum in the Background
While Bitcoin steals the spotlight, Ethereum is snoozing on the sidelines. Grayscale’s Ethereum Trust has been a tad sluggish lately, shedding 6,036 Ether since December 9, when it peaked at 2.94 million ETH. In the same time frame, Bitcoin skyrocketed by 116%, while Ethereum managed just a 122% ascent. Looks like Ethereum needs a little pep talk!
