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Grayscale Bitcoin Trust

<p>Bitcoin (BTC) has experienced a notable decline of over 5% in its value, currently resting at $42,600, following the debut of spot ETFs in the United States last Thursday. This drop in price action is being interpreted as a classic case of “sell the fact” by market analysts.&nbsp;</p>
<p>While the debut of spot <a href="https://www.cryptopolitan.com/spot-bitcoin-etfs-might-not-be-what-we-hope/" rel="noopener noreferrer nofollow">ETFs</a> was eagerly anticipated, the subsequent decline suggests that investors may have been quick to take profits after the news.</p>
<h2 class="wp-block-heading" id="rsi-divergence-signals-potential-correction">RSI divergence signals potential correction</h2>
<p>Technical analysis conducted by 10x Research, led by Markus Thielen, points to a potential near-term correction in Bitcoin’s price. According to 10x Research, “Bitcoin’s RSI divergence signals correction,” referring to the Relative Strength Index (RSI) as a momentum indicator.&nbsp;</p>
<p>A bearish divergence is observed when prices reach new highs, but the RSI fails to confirm the trend, indicating potential exhaustion in the upside momentum.</p>
<p>BTC recently reached a two-year high, surging above $49,000; however, the 14-day RSI did not confirm this peak. The subsequent price decline has validated this bearish divergence, suggesting that further downward pressure may be in store.</p>
<p>Another important technical indicator is the Moving Average Convergence Divergence (MACD) histogram, which is used to gauge trend strength and changes. It has crossed below zero, signaling a shift towards bearish momentum in Bitcoin’s price.</p>
<h2 class="wp-block-heading" id="impact-of-grayscale-s-etf-on-bitcoin-price">Impact of Grayscale’s ETF on Bitcoin price</h2>
<p>Markus Thielen of 10x Research also highlights the potential impact of investors in Grayscale’s ETF, the Grayscale Bitcoin Trust (GBTC), on Bitcoin’s price.&nbsp;</p>
<p>GBTC investors are expected to shift their investments to other low-fee options, putting additional pressure on Bitcoin’s price. Grayscale currently charges a 1.5% annual management fee, while other asset managers like BlackRock charge only 0.25%.</p>
<p>GBTC, once a closed-end trust, is one of the largest holders of Bitcoin, with a substantial coin stash valued at over $27 billion. GBTC shares started trading in 2013 and became redeemable on January 11. Investors’ decisions to move their funds from GBTC to other lower-cost alternatives may further impact Bitcoin’s price dynamics.</p>
<h2 class="wp-block-heading" id="questioning-grayscale-s-strategy">Questioning Grayscale’s strategy</h2>
<p>Notably, 10x Research questions Grayscale’s strategy, stating, “Grayscale is betting that investors will slowly switch out of their 1.5% annual management fee ETF offering (due to tax consideration) instead of choosing other reputable companies that offer 80% less in fees.”&nbsp;</p>
<p>The research firm also highlights the negative news surrounding the parent company DCG and Grayscale itself, including the controversial 2.0% management fee charged on a product that, at one point, traded at a significant discount to its net asset value, potentially overcharging GBTC holders.</p>

Bitcoin (BTC) faces downward pressure as spot ETF debut triggers sell-off

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