Grayscale’s discount could signal the start of a new Bitcoin bull run, Bloomberg’s McGlone says

Grayscale Bitcoin Trust's fall into a negative premium level is far from a sign of distress. Instead, it may be a signal that the market is resetting a new round of Bitcoin rebound. Bloomberg Intelligence analyst Mike McGlone said that recent market indicators suggest that $100,000 may be the next threshold.

Bloomberg Intelligence analyst Mike McGlone, who correctly predicted that Bitcoin (BTC, -4.97%) would break $50,000 this year, said recent market indicators suggest that $100,000 could be the next threshold.
McGlone wrote in his March outlook that the so-called Grayscale premium — a closely watched metric in the cryptocurrency market — recently fell below zero, which could mean that bitcoin’s rapid 21% drop to about $43,000 last week may have reset the market for a new run. As of Thursday, prices have rebounded to about $50,000.
Grayscale premium refers to the difference between the bitcoin price implied by the share price of the publicly traded Grayscale Bitcoin Trust (GBTC) and the bitcoin price on cryptocurrency exchanges. Historically, it has been trading at a positive premium. Grayscale is a unit of Digital Currency Group, which also owns CoinDesk.
“If history is a guide, bitcoin’s price divergence across U.S. regulated exchanges in late February suggests a solid foundation for the price,” McGlone wrote.
“Suggesting a massive flight-from-the-wall selling by investors, the Grayscale Bitcoin Trust closed at its steepest discount ever, while December CME-traded Bitcoin futures settled up about 20%.”
“While normal maturation and increasing market depth will narrow wide price discrepancies, we believe the extremes in late February demonstrate that Bitcoin is still a very young asset.” (CoinDesk)