Bitcoin price prediction is not an easy fiat given the volatile nature of the king of cryptocurrency Bitcoin (BTC). However, one analyst claims that the prediction value on GBTC charts is higher than any other form.
Bitcoin price was pushed down to just below eight thousand dollars ($7,899) on September 24, as a result of the ongoing selling pressure, which threatened the support levels, leaving the crypto markets very directionless.
Quaint crypto traders look forward to seeing any sort of correlations that may verify an upward projection for the BTC/USD trading pair chart.
GBTC for Bitcoin price prediction
Crypto analyst Alex Kruger believes that the price based correlation between BTC and the Grayscale Bitcoin Trust (GBTC) premium has less predictive values. While the correlation with delayed premiums is expected to fail traders that employ the data to predict future price variations in the trading pair’s chart.
However, correlations with lagged premiums all hover around zero and are not statistically significant. pic.twitter.com/0jo2AcyTl5
— Alex Krüger (@krugermacro) October 18, 2019
Financial correlations are supposed to measure the relations of two or more market variables for a particular period. When these correlations are well-built, the relationships can have adequate predictive value for constructing future Bitcoin price prediction variations.
Per Kruger, the Grayscale Bitcoin Trust premium is not one of the major indicators for the BTC/USD trading pair, especially when this is put relative to the net asset value (NAV), as it only reflects the market’s ongoing condition.
With the chance of a new BTC Exchange-Traded Fund (ETF), various cryptocurrency traders may be viewing the Grayscale Bitcoin Trust premium to measure the price variations in the BTC/USD trading pair.
Though, the United States Securities and Exchange Commission’s (SEC) disapproval of the Bitwise Exchange-Traded Fund (ETF) has appeared with major price drops in BTC’s valuation.
What is GBTC?
GBTC or Grayscale Bitcoin Trust is the only Bitcoin stock trading option available for trading Bitcoin on the stock market. The service is exclusive and comes with a premium fee.