Quick Take

The cryptocurrency market has seen significant activity after Grayscale Bitcoin Trust’s (GBTC) victory over the SEC.

Over the past 24 hours, liquidations in the crypto market amounted to $171 million, while shorts represented an even more significant segment at $119 million. This flurry of trading activity, likely influenced by GBTC’s legal triumph, is reflected in a notable 6% rise in futures open interest. This increase primarily stems from crypto margin trades on the Bitmex exchange.

Additionally, a purchase of approximately $200 million in spot bitcoin was observed, with most of these transactions originating from Binance. This surge in acquisition indicates a growing confidence in Bitcoin’s market position.

Simultaneously, the GBTC discount, which refers to the difference between the price at which GBTC shares trade and the value of the underlying Bitcoin, narrowed to approximately 18% of the Net Asset Value (NAV). This decline suggests a potential increase in investor confidence in GBTC.

Furthermore, this unfolding scenario also positively impacted Bitcoin mining stocks and other crypto equities, signifying a favorable day in the broader digital asset market.

Netflow: (Source: Glassnode)

The post Grayscale Bitcoin Trust victory sparks surge in market activity and narrows GBTC discount appeared first on CryptoSlate.

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Filed under: Bitcoin - @ August 30, 2023 10:15 am