Inattentive investors buy the wrong Bitcoin

Studying before purchasing any asset is essential to avoid problems.

Some inattentive investors bought Bitcoin from a broker the wrong way. By paying $ 22,000 for each currency, traders bought Bitcoin at a market value that has never been reached before.

Bitcoin’s price today drops 2% in the last 24 hours, quoted above $ 18,000. In Brazil, Sunday starts with Crypto Trader quoted at R $ 97 thousand. Anyway, the recent price hike still exceeds 10% in the last seven days.

With an impressive rise in the year, Bitcoin has seen many investors take an interest in the currency. Some have never bought digital currency before, that is, they have no experience.

Seeing the currency rise, many preferred to acquire their first fractions of Bitcoin. However, without studying, “the price you pay is sometimes too high”.

Probably novice investors, buy “inattentive” Bitcoin and pay $ 22,000 in each currency

The recent upward movement in Bitcoin has been driven mainly by the purchase of investment funds. Some of them are big and buy many coins a day, taking Bitcoin’s price to a new bullish rally.

One of the funds that has been buying Bitcoin willingly is Grayscale, a U.S. company. When buying Bitcoin, Grayscale allows its customers to buy the so-called Grayscale Bitcoin Trust (GBTC).

This product allows investors to buy Bitcoin without having to worry about the details of technology. That is, anyone who wants to have exposure to digital currency can buy a “share” of Bitcoin.

However, the price of GBTC has grown a lot in the last few days, quoted above the market price of Bitcoin. In this way, inattentive investors from Grayscale buy Bitcoin up to 18% above.

According to Messari analyst Mira Christanto, investors paid up to $ 22,000 in Bitcoin. The maximum price of Bitcoin in brokerages is $ 20,000, recorded at the end of 2017. Even with the current price hike, buying the wrong Bitcoin like this can lead many investors to register losses.
JPMorgan pointed out that Square is more important than Grayscale for Bitcoin price increase

During the Bitcoin frenzy of the past few days, it became clear that big companies are important for the currency’s price to appreciate. With the bulk purchase made by Grayscale, the company gained prominence in the market.

However, for JPMorgan, one of the largest US banks, Grayscale is not the most important. In a recent report to the market, JPMorgan pointed out that Square is more important to Bitcoin’s appreciation.

It is noteworthy that Square is a company of Twitter CEO Jack Dorsey. Recently, the company publicly announced the purchase of $ 50 million in Bitcoin as a store of value.

JPMorgan’s report analyzed only the third quarter of 2020 for both companies. However, analysts make it clear that Grayscale’s fourth quarter has been strong. Meanwhile, JPMorgan has yet to obtain trading data from Square in the period.

Either way, the rise in current Bitcoin is explained by institutional buying. Even those inattentive investors who buy over-the-market Bitcoin have helped in the recent move.