Weekly roundup of bitcoin news

Bitcoin dropped to a five-month low this week. The movement has panicked some participants in crypto markets, but the latest losses are largely explicable by reference to recent events.

Firstly, the Bitcoin mining crackdown in China has devastated the market in the past several weeks. Many mining companies have had to cut back their activities. However, these companies are still operating from different sites all over the world. The drop in hashrate is temporary with normality likely to return soon as miners adapt logistically to recent events.

A number of Bitcoin options expire today, so some volatility might be expected. The number of expiries isn’t especially, so volatility might not be as high as is typical around such events.

Finally, Grayscale Bitcoin Trust (GBTC)’s unlocking has frightened many investors. GBTC is not an ETF that will let people sell their positions, but unlocking is like unlocking shares of a pool of funds. However, if many people liquidate their positions, there is a risk that Grayscale will need to ask for permission from the SEC to liquidate. Grayscale holds approximately 3% of the total supply of Bitcoin, more than 650,000 BTC.


Disclaimer: the publication of analysis is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience or current financial situation. Analysis is not prepared in accordance with legal requirements promoting independent investment research and Exness is not subject to any prohibition on dealing before the release of analysis. Readers should consider the possibility that they might incur losses. Exness is not liable for any losses incurred due to the use of analysis.