Business & Investment

Cryptographic market shows signs of excess in Bitcoin rebound

By Olivia Raimonde and Claire Ballentine

To Financial market Filled with bubbles, one of the more speculative corners shows signs of foaming again.

Bitcoin It has rebounded from last week’s plunge, when prices plummeted by more than 12%, the weekly plunge since March last year. Digital assets have bounced off less than $ 30,000 on Friday and are trading at around $ 34,400 as of 10:22 am on Monday. New York..

Jerry Braakman, Chief Investment Officer of First American Trust in Santa Ana, California, said: “This is a bit like a tulip mania where people price and the next person prices higher. $ 2 billion.” So it’s worth it because people want it. It’s it. Can it keep itself? It might be better until it loses its luster and something else comes in, and suddenly you have a flip effect. ”


Marathon Patent Group Inc. has become the latest public company to snap coins in the midst of this month’s volatile token volatility.The· Cryptography The miner said he bought 4,812.66 on Monday Bitcoin The total purchase price is $ 150 million. The move strengthens its position as a “pure” investment option for those seeking more exposure to the world’s largest cryptocurrency, the company said. The Las Vegas-based company was not the first to add Bitcoin directly to its balance sheet. MicroStrategy Inc. Michael Saylor, CEO of MicroStrategy, announced on Twitter Friday that it will invest an additional $ 10 million in company cash in accordance with its financial reserve policy, bringing MicroStrategy’s holdings to approximately 70,784 Bitcoins.

Sailor invested $ 425 million in Bitcoin last year out of his company’s $ 500 million in cash. Bitcoin converts then raised an additional $ 650 million through convertible bonds to invest in the world’s largest cryptocurrency in December. Marathon Patent has raised $ 250 million through a registered direct share offering on January 21st.

Marathon patent share rose 6.9% on Monday. Riot Blockchain Inc. And Silvergate Capital Corp. Other cryptocurrency favorites such as continued to rise.

Cryptographic-centric companies are not the only indicator of market bubbles. While the Grayscale Bitcoin Trust (GBTC) premium of over $ 20 billion has fallen, other funds are facing soaring markup as retail investors demand cryptocurrency exposure.

Grayscale Litecoin Trust (LTCN) is currently trading at a premium of approximately 2,275%, with a price of $ 295 per share and a net asset value of $ 12.42. At the same time, Bitcoin Cash Trust (BCHG) has a 524% premium. According to Bloomberg Intelligence, LTCN prices need to fall 95.7% and BCHGs need to fall 84% to return to normal trading.

Much smaller than GBTC (LTCH’s assets are $ 166 million, BCHG’s assets are $ 107 million), but consider that most of the product transactions are less than 100 shares and many have only one share. And the fund has a retail fingerprint.

“Inaccurate pricing of grayscale crypto trusts is primarily caused by retail investors and is both a cause and victim of significant differences in net asset value,” writes James Seyfert. I am. ETF Bloomberg Intelligence Analyst, Monday Note.

Cryptographic market shows signs of excess in Bitcoin rebound Cryptographic market shows signs of excess in Bitcoin rebound

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