Nowadays in the field of cryptocurrency, "Gray" has become a word that everyone can't avoid, and Gray Trust has become a force that cannot be ignored in the crypto asset market. Every large-scale purchase of Grayscale will boost market confidence, and various media will rush to report.
Recently, Grayscale made another move, buying 17,100 bitcoins at a time, and BTC Wulianyang rose to around $11,000. With such large-scale purchases and frequent purchases, Grayscale has become the majority of the crypto market.
According to Morecoin data, as of September 28, Grayscale held a total of 449,800 BTC, equivalent to 2.4% of the current BTC circulation. In addition, Grayscale is also equipped with encrypted assets such as ETH, BCH, and LTC. As the first crypto asset investment institution to report to the SEC, Grayscale Trust's holdings reflect to a certain extent the amount of funds that traditional institutional funds enter the cryptocurrency market.
Open a position on the left, optimistic about the later stage
Morecoin analyzed Grayscale's actions in the past three months, among which:
June 11-24 is the first stage of intensive holdings, with a total of 21,000 BTCs added;
July 22 to August 14 is the second stage of intensive holdings, with a total increase of 27,700 BTC;
August 26 to September 2 is the third stage of intensive increase in holdings, with a total increase of 11,700 BTC;
September 23-24 was the fourth stage of intensive holdings, with an increase of 17,100 BTC.
Contrasting with the trend of BTC, in the first stage of holdings, BTC was in a narrow downtrend channel, and the price fluctuated around 9,000 USD; in the second stage, BTC began to strengthen, rising from 9,300 USD to 11,800 USD; in the third stage, BTC went up when it encountered resistance and rose After reaching $12,050, it fell to $11,150; in the fourth stage, after BTC fell below $11,000, the price was around $10,350.
On the whole, except for the increase in holdings during the third stage of the increase, the other three increase in holdings were selected when the currency price fell or after the decline, and the number of purchases was more than 11,700 in the third stage.
It is not difficult to see that Grayscale adopts the strategy of opening positions on the left. This strategy is more in line with the concept of value investment, that is, Grayscale believes that the intrinsic value of BTC is higher, so it does not miss the opportunity to buy at a low price every time.
This phenomenon clearly reveals that Grayscale is optimistic about the BTC market outlook. As a professional investment institution and BTC giant whale, the trend of Grayscale provides a vane for retail investors to a certain extent.
Grayscale statistics, BTC speculators are gradually decreasing
The gray scale distinguishes the market structure by the holding time of the holders. Holding BTC for 1 to 3 years is defined as a holder, and moving BTC within 90 days is known as speculators.
According to gray statistics, the number of BTC speculators in the market is decreasing, and the number of believers is increasing, which is similar to the trend in early 2016. In addition, the current Daily Active Addresses (Daily Active Addresses) are at the highest level since 2017, which shows that the current BTC network is highly accepted and may also herald the beginning of a new market cycle.
Grayscale has repeatedly increased its holdings to show its optimism about the bull market in the crypto market, which also means that more and more qualified investors are entering the currency market. Grayscale official website shows that only individuals with an annual income of more than 200,000 U.S. dollars (or a joint annual income of 300,000 U.S. dollars with their spouse), or net assets of more than 1 million U.S. dollars (excluding the main residence), can participate in Grayscale private equity.
What is the logic of these high-net-worth individuals and traditional capital forces buying crypto assets frantically? Gray said that with the acceleration of global inflation, the market's demand for scarce assets such as BTC is growing. By measuring some BTC indicators, Grayscale believes that the current BTC market structure is very similar to the performance before the super bull market in 2016.
Grayscale stated in a report that in the past ten years, BTC has evolved from a small experiment to a leader in a new asset class, just as computers and the Internet have changed the way people store, process, and share information. Fundamentally enhance the way of storing, processing and exchanging value.
In the digital world, BTC may replace gold and become the ultimate store of value asset.
Reasonably allocate assets and pay attention to controlling risks
Based on the rough calculation from the current BTC price of $10,730, Grayscale did not have much profit or loss in buying BTC in the past three months. It is more like executing long-term investment, waiting for the bull market to come. As a professional investment institution, gray-scale investment behavior has certain reference significance for retail investors. But it should be noted that the continuous buying of Grayscale does not mean that the bull market has stabilized.
As a one-stop digital asset financial service platform, Morecoin (www.morecoin.com) needs to remind here that professional investment institutions will adopt various financial instruments for risk hedging, and in the case of stronger funds, short-term Price fluctuations will not have a big impact on the gray scale. For ordinary investors, it is more necessary to rationally allocate assets and control risks based on their own circumstances, and avoid blindly following investments and brainless studs.