The falling Grayscale premium signaled the start of the new Bitcoin rally, said Bloomberg analyst McGlone.

Bloomberg Intelligence analyst Mike McGlone, who correctly predicted bitcoin would rise this year to prices above $ 50,000, said recent market indicators suggest $ 100,000 could be the next threshold.

McGlone wrote in a March outlook report titled Bitcoin makes Gold redundant ?, that the recent drop below zero in the Grayscale premium – a closely watched indicator in the crypto market – which could signal that last week’s 21% sell-off that brought BTC down to around $ 43,000 could have reset the market for a new bullrun.

Grayscale premium refers to the difference between the bitcoin price implied by the share price in Grayscale Bitcoin Trust (GBTC) and the price of bitcoin traded on cryptocurrency exchanges. Historically, it is positive.

Bloomberg Intelligence chart of Grayscale premium vs CME bitcoin futures premium | Source: Mike McGlone

“Bitcoin’s late February spread on US regulated exchanges demonstrates a solid price foundation, if history is a guide,” McGlone wrote.

“Pointing out selling by capital, Grayscale Bitcoin Trust closed at its highest discount ever, while bitcoin futures traded December CME about 20% higher.”

The normal maturity and increasing market depth will narrow the price gap and we see the extreme points towards the end of February as a sign of just how nascent bitcoin is.

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