The price of Bitcoin has recovered strongly overnight, rising from around $34,000 to $38,500. The 10% rally coincides with Grayscale reopening its products.
Last month, Grayscale closed its products for new investors. Since Christmas, the Grayscale Bitcoin Trust did not report any additional inflow as a result.
The Grayscale Bitcoin Trust is the go-to investment vehicle for institutions in the U.S. to gain exposure to BTC. Hence, when it is closed to new investors, there are naturally lower capital inflows into the Bitcoin market.
Is Grayscale kickstarting the Bitcoin rally?
Although it is difficult to prove an exact correlation, the timing of Bitcoin’s relief rally is noteworthy.
Grayscale reopened its products for new investors on January 13. Within 24 hours, Bitcoin surged by 10%, seeing an explosive reaction from buyers to the $30,000 support level.
Bybt, an aggregated derivatives exchange data provider, reported that Grayscale added 2,172 BTC in the last 24 hours. At the price point of $38,500, it is equivalent to $83.6 million.
Grayscale is back！Grayscale gains another 2172 #BTC in 24 hours. Their total AUM now $26.39 billion.