Does GBTC stock match the underlying bitcoin price?

While GBTC is a trust that only holds Bitcoin, the GBTC stock price does not exactly match the underlying Bitcoin price. Depending on investor sentiment, its shares can trade at a premium to its assets, or at a discount to its total Bitcoin holdings.

Is GBTC a good buy right now?

Bottom line: GBTC is not a good buy right now. Most investors would be better served studying the stock market, and compiling a watchlist of profitable companies setting up in proper bases, when looking for stocks to buy. To find the best stocks to buy or watch, check out IBD Stock Lists such as the IBD Leaderboard.

What happened to GBTC?

GBTC's last breakout came in October 2020 and it has now given back all its gains and more from a 14.88 entry, according to MarketSmith analysis. The relative strength line fell sharply since the start of April. A recent spell of sideways movement has given way to another dramatic downward move.

Should you buy grayscale Bitcoin Trust (GBTC)?

Grayscale Bitcoin Trust, like the underlying Bitcoin, is prone to wild swings. Ultimately, it's a bet on Bitcoin, which is a speculative asset more than a real currency. GBTC stock is badly lagging the S&P 500 this year. The benchmark index is hardly a stellar performer itself but has suffered a less painful drawdown.