In the long term there have been high levels of institutional adoption in Bitcoin, on-chain indicators looks bullish, fundamentals and it all points to an extension of the rally. In the last twenty four hours there have been a high bullish momentum in bitcoin.
Mike McGlone, the Bloomberg intelligence senior commodity strategist, posited that the current stage of bitcoin is transition phase. Bictoin is becoming a global reserve asset other than a risk asset.
By the end of the year, there is a likelihood, that the price of bitcoin could peak at $400,00 by the end of the year and when the rhythm of bitcoin un 2017 bull market is compared with the current one. As estimated by McGlone.
In late 2020 and early 2021, it can be seen how the latter metric has seen two significant growths. Recent Bitcoin price action and the approval of several Exchange Traded Fund (ETF) in Canada have had an impact on Grayscale Bitcoin Trust (GBTC). This product has been one of the most favored for institutional adoption.
However, its premium has trended lower in recent days. On the relationship between BTC’s price and the drop in GBTC’s premium, McGlone concludes:
Bullish underpinnings for GBTC are gaining legs, as it outpaced Tesla by almost 50% this year. The increasing probability for Bitcoin ETFs in the U.S. is supporting the price…but contributing to the GBTC discount.