The rapidly spiking price of bitcoin has caused some analysts to warn investors about investing in Barry Silbert’s Grayscale Bitcoin Investment Trust (GBIT).
Bubbles have started to form for bitcoin’s price, according to Parke Shall, a financial analyst at Orange Peel Investments, writing in Seeking Alpha. Shall noted that the bitcoin price traded at over $1,800 Thursday morning, which is 40% more than where it was a short time ago.
The influx of capital has contributed to the bubble, Shall warned. He said he wanted to prevent people from buying bitcoin at a 70% premium. The intraday price for the GBIT was as high as $265 on Wednesday before dropping back to $210 to $220, he noted, delivering losses that are not in line with bitcoin’s movements.
The intraday swings cannot be seen on bitcoin price charts since the charts show the cryptocurrency’s closing prices, Shall said.
The GBIT price was $219 at the time of this report.
GBIT Raises Concern
Read more ... source: CryptoCoinsNews
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