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Seeking Alpha 2022-10-04 16:52:30

Grayscale Bitcoin Trust And The Attack Of The Fed

SummaryAfter hitting a 52-week high of $55.05, GBTC has been getting hammered from the plunge in the price of Bitcoin.Now that it's trading under $12.00 per share, its entry point is definitely starting to look interesting.Even if the price of Bitcoin drops more than I think it's going to, patient investors will do very well at the current share price.What to expect over the next several months from the Federal Reserve, and why it's limited as to how high it can raise interest rates, meaning it's unlikely that Bitcoin will plunge to the lows some are predicting.Why the next couple of CPI readings in the U.S. will determine how the Fed reacts.Grayscale Bitcoin Trust (GBTC) has been taking a beating over the last year, plunging from a 52-week high of $55.05 to an all-time low of $11.03. That has been the direct result of the price of Bitcoin (BTC-USD) plummeting from its all-time high of $68,770, to approximately $19,000 as I write.The major reasons for the decline in the price of Bitcoin is the Federal Reserve raising interest rates to combat high inflation, the flagship crypto moving in correlation with high-risk assets, and the strength of the U.S. dollar.In this article we'll look at why I believe Bitcoin and GBTC have more limited downside than some bears think, and what the factors are to look for in order to get a clearer understanding of what the near-term probabilities are for GBTC.Grayscale Bitcoin Trust and its recent...

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