BTC Range Trading After the 3rd Halving

KEY TAKEAWAYS

  • After Halving event, BTC went through price correction and has been trading in a range since then.
  • GBTC’s buying interests has fuelled the price upswing till 8 May 2020 but has subsequently waned on 11 May 2020, which mirrors the price movement of BTC.

On 8 May 2020, BTC price peaked at 10,000 USD but has retraced to 8,200 USD and has been trading in a range. The 3rd halving has not developed BTC into a new trend yet.

We had also observed that Grayscale purchased the maximum daily amount of BTC and ETH on 8 May 2020 as seen in the chart below. A great sell-off happened on Sunday while Grayscale was not open for subscription. It is reasonable for miners to lock in profits before the halving, as the unit mining cost will almost double after the halving. Buying interests from Grayscale’s GBTC and ETHE waned on Monday. With the absence of large buyers like GBTC or ETHE in the spot market, it is not surprising to see price correction.

Source: Grayscale

Source: Grayscale

Veteran hedge fund manager Paul Tudor Jones claims he holds 1-2% of his asset in bitcoin. As of March 31 2020, Tudor Investment Corp manages around USD 38.4 billion and PTJ’s net worth is estimated at USD 3.3 billion. Assuming the 1% of PTJ’s personal asset, USD33 million, is on CME futures, his position represents around 8.3% of total CME open interest and is already among the largest traders on CME, not to mention 1% of his fund.

Source: CME Group