An all-time low was reached last week for the Grayscale Bitcoin Trust (GBTC), which has been hovering at a deficit ever since the start of last year.
Per the Block’s Data Dashboard, GBTC’s discount dropped to -35.26%, its lowest level yet. In other words, GBTC’s share market price is more than 35% below its net asset value.
On June 17, GBTC achieved a -34% low, which was its prior record value. Before the SEC decided whether GBTC could be transformed into a spot Bitcoin ETF, the discount shrunk.
The regulator denied Grayscale’s request to turn its offering into a spot ETF because it believed the enterprise had adequate preparedness to guard against tampering and fraud. In response to the verdict, Grayscale later sued the Securities and Exchange Commission (SEC).
The low reached on Friday coincides with a general decline in the value of decentralized and conventional markets. According to information obtained from Coinbase on September 26, the price of one Bitcoin (BTC) was $19,173.
The Federal Reserve increased the fed funds rate by 75 bps in the week before, which was the highest increase in 15 years. The market had already priced in a hike of 75 bps when the decision to change the rate to 3.25% from 3% was made. Nevertheless, the news caused a significant sell-off in the markets.
As the connection among Bitcoin (BTC) and Nasdaq has increased to its greatest level since May 2022, cryptocurrency markets have recently been closely following stocks.
Prior to the week before, markets fell after the publication of higher inflation figures in the United States, which came in at 8.3% YoY.