Market Cap Melts Below $900b As the Demand for Bitcoin Drops
On Mar 05, 2021
As the price drops, the market cap of Bitcoin goes below $900b. Bitcoin is trading around $ 47,000, and it affected the market cap. Meanwhile, Grayscale Bitcoin Trust trades at a -11.92% discount which is record low.
The recent price drop affected the market capitalization of Bitcoin. Ten days before total market capitalization of Bitcoin was higher than $1 trillion. As a result of the price drop from $58k to $47k, the market cap melted below $900 billion.
Yesterday Bitcoin bounced from $48k to $52k. This rise kept Bitcoin above the $900b market cap. However, the surge did not take long, and at the end of the day price increase faded away. According to the well-known crypto analyst Lark Davis, there will be a dip in price if BTC doesn’t increase steadily. Given that yesterday’s price surge did not take long, then there will be another dip which we are in now, and after that, Bitcoin will be bullish again soon.
At the time of writing, the market capitalization of Bitcoin was $ 887 billion. Bitcoin is trading at around $ 47,800.
Grayscale Bitcoin Trust ($GBTC) Is Trading at Discount
The Grayscale Bitcoin trust shares ($GBTC) currency is trading below the market price of Bitcoin. Grayscale shares sold at a discount price eight days out of the last 10. According to Glassnode, shares sold at a -11.92% discount on March 4th.
$GBTC is trading at a -11.92% discount – record low. #Bitcoin
Chart: https://t.co/tdq2AXRlwO pic.twitter.com/ZbIOP18Yll
— glassnode (@glassnode) March 5, 2021
According to Grayscale, the shares traded at $41.25, and the Bitcoin holdings per share is $46.83.
This can be bullish news in the market. Mike McGlone, the senior commodity strategist, tweeted about this as a “signal” for Bitcoin to rise over $ 100,000. This kind of scenario has not experienced much, and it can be bullish news for Bitcoin.
Grayscale #Bitcoin Trust Discount May Signal March to $100,000 – Bitcoin’s end of February price disparities on U.S. regulated exchanges portend a firming price foundation, if history is a guide, and are evidence of just how nascent the crypto is. pic.twitter.com/qj6hfTvH8K
— Mike McGlone (@mikemcglone11) March 4, 2021
The expected bull-run of Bitcoin can be huge. The market is waiting for the bullish move, and BTC will mark another ATH as expected.
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