This price is also a new high for Bitcoin since January 2018. Historically, Bitcoin reached $19,875 in December 2017. In other words, in Bitcoin's long history of more than ten years, it has only been about one month, and its price is higher than it is now.

In other words, most of the time buying bitcoins has been profitable until now.

But in every bull market, Bitcoin is not the only one performing. Although Bitcoin has been mediocre for a long time, it is a fact that it has almost become marginal in the circle.

However, no matter what happens in the market or what hotspots arise, we should not forget Bitcoin, let alone ignore its role in our asset allocation.

Recently, the "Grayscale Company that keeps buying, buying, and buying" has bought 490,000 BTCs, and the purchase of thousands of BTCs every day is also a big deal. On November 5th, 100,000 ETH were directly purchased.

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Grayscale, what exactly is it?

The prototype of Grayscale Investment Company is a bitcoin investment fund under SecondMarket, a private equity trading platform. Later, the Bitcoin investment fund broke away from the original company and established Grayscale Investments.

To put it simply, Grayscale is a fund company and a legally established investment company. It is also the only company that can buy Bitcoin in the current US pension plan.

In other words, if institutions currently want to buy Bitcoin and Ethereum, they must pass Grayscale.

Conversely, Grayscale’s exchange “selling” Bitcoin or Ethereum is actually divided into two steps:

The first step is to carry out private placement and open to qualified institutional investors to subscribe for GBTC (you can understand it as a Bitcoin voucher issued by Grayscale). After institutional investors buy it, they cannot be unlocked for six months (previously 12) moon).

In the second step, after the unlocking period expires, institutions can sell GBTC to retail investors in the US stock market, and retail investors in the stock market are responsible for receiving GBTC.

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What impact does "Grayscale Buy, Buy, Buy" have on the market?

Since April this year, Grayscale has locked up a lot of positions, and since October, a large number of GBTCs have begun to be unlocked, and institutions will start selling GBTCs in the market, that is, private placements have begun to ship. But instead of selling BTC directly, they sold the stocks in their hands. The "stocks" kept rising, and retail investors continued to take orders.

However, there are still some institutions that don’t care about the current price of Bitcoin. When the time comes, they will unlock BTC there, and they will close their positions directly. To close a short position, you need to buy, and buying will increase the price.

The editor inquired about Grayscale’s private placement, so what to do with private placement of more money is nothing more than eating up those retail investors who want to unlock GBTC while continuing to buy BTC. Based on the optimism about BTC and the participation of institutions, I believe that the rise of BTC has just begun. In the process, this round of bull market will be led by BTC.

However, as Grayscale, DBS Bank, PayPal, etc. have successively increased Bitcoin or entered the cryptocurrency industry, the pricing power of Bitcoin is falling to Wall Street. It is also an indisputable fact that Chinese retail investors no longer have any bitcoins.