Bitcoin, everything is just the beginning
Michael Sonnenstein, managing director of Grayscale, believes that the rally, which has pushed bitcoin to all-time highs, will gain momentum.
As for Bitcoin, "it's all just beginning," Sonnenshine said in an interview on CNBC. Since the beginning of the year, the price of BTC has increased by more than 170%, but due to the stable flow of capital into the various investment products Grayscale offers, the real rally is just beginning, and the president of the company is sure.
As for Bitcoin, "it's all just beginning," Sonnenshine said in an interview on CNBC. Since the beginning of the year, the price of BTC has increased by more than 170%, but due to the stable flow of capital into the various investment products Grayscale offers, the real rally is just beginning, and the president of the company is sure.
Grayscale's inflows of capital confirm the upward trend
Sonnenschein noted that BTC remains a highly unpredictable asset, which does not make it volatile.
When asked which products are seeing the biggest influx - Bitcoin or XRP, Sonnenshine explained that all 10 products the company offers are in demand.
Besides BTC, Grayscale currently offers investment products in BCH, ETH, ETC, ZEN, LTC, XLM, XRP, and ZEC. The company also provides access to leading cryptocurrencies through its Grayscale Digital Large Cap Fund.
According to the managing director, about a third of Grayscale investors now have more than one product in multiple products simultaneously. This diversity is observed throughout 2020.
More BTC miners can sell Grayscale buys
Grayscale has already bought a massive amount of bitcoin this year and is not going to stop. In particular, in the last week alone, the company acquired more than 7,300 bitcoins.
Miners currently mine about 144 blocks per day on average and receive 6.25 bitcoins per block. Thus, the total number of coins circulating last week increased by 6,300 BTC. It turns out that because of Grayscale, bitcoins are disappearing from the market faster than they are being created.
Grayscale is only one of the main buyers of whales, buying extensively up to tokens. PayPal, Square, and many other institutional investors are also buying huge amounts. According to a recent report by Pantera Capital, these two payment firms are also withdrawing more bitcoins from the market than miners can generate.
Apparently, such a large-scale acquisition of bitcoin was the main catalyst for the rally, which, according to Suninchin, is still far from over. Perhaps with such a lack of supply, even the most outlandish price predictions of recent weeks may not be as crazy as they seem.
Sonnenschein noted that BTC remains a highly unpredictable asset, which does not make it volatile.
When asked which products are seeing the biggest influx - Bitcoin or XRP, Sonnenshine explained that all 10 products the company offers are in demand.
Besides BTC, Grayscale currently offers investment products in BCH, ETH, ETC, ZEN, LTC, XLM, XRP, and ZEC. The company also provides access to leading cryptocurrencies through its Grayscale Digital Large Cap Fund.
According to the managing director, about a third of Grayscale investors now have more than one product in multiple products simultaneously. This diversity is observed throughout 2020.
More BTC miners can sell Grayscale buys
Grayscale has already bought a massive amount of bitcoin this year and is not going to stop. In particular, in the last week alone, the company acquired more than 7,300 bitcoins.
Miners currently mine about 144 blocks per day on average and receive 6.25 bitcoins per block. Thus, the total number of coins circulating last week increased by 6,300 BTC. It turns out that because of Grayscale, bitcoins are disappearing from the market faster than they are being created.
Grayscale is only one of the main buyers of whales, buying extensively up to tokens. PayPal, Square, and many other institutional investors are also buying huge amounts. According to a recent report by Pantera Capital, these two payment firms are also withdrawing more bitcoins from the market than miners can generate.
Apparently, such a large-scale acquisition of bitcoin was the main catalyst for the rally, which, according to Suninchin, is still far from over. Perhaps with such a lack of supply, even the most outlandish price predictions of recent weeks may not be as crazy as they seem.