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It seems that reality has taken hold... I'm wagering that it will be back at the $10K range.

It seems that reality has taken hold... I'm wagering that it will be back at the $10K range.

(post is archived)

[–] 1 pt

It's unlikely to go back to $10K, or even $20K. As long as the flow of funds from Grayscale is steady, a dip that low would mean that miners and whales are dumping, and not just to lock in profits.

If we estimate about $500M flowing in from institutions each week, that consumes about 16K of BTC at current prices. (Keep in mind only ~7K is mined weekly) If the price dropped to $10K, then those sources would buy a whopping 50K of BTC a week. That would not be sustainable for long which would equate to over 2M BTC/year, more than what is stored on all the exchanges combined right now.

Unless the flows to Grayscale slow down (which is unlikely), expect any dips in price will be temporary until they come in and suck up more coins at a discount price.

[–] 0 pt

For anyone interested, they can track Grayscale holdings and purchases here:

https://www.bybt.com/Grayscale

In just the past week, they've increased holdings by over 30K, which equates to about $1B in investor inflows.