Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n GBTC closed on Monday at $23.19 per share. The net asset value of the Bitcoin it owns, though, is worth only $18.16 per share.<\/p>\n In other words, investors are paying a 28% premium to buy GBTC versus buying Bitcoin itself. That’s nuts!<\/p>\n That’s like paying $1.28 to buy a $1 bill. No rational person does that.<\/p>\n Of course, GBTC has ALWAYS traded at a premium to its net asset value. It’s an easier way to buy and sell Bitcoin. So, until the cryptocurrency market becomes more liquid, GBTC is going to trade at a premium to its net asset value.<\/p>\n Historically, though, that premium is usually around 10%-12%. The current 28% premium is excessive.<\/p>\n And, when we’ve seen this situation before – like in June 2019, December 2017, and in February of this year – it signaled the price of Bitcoin was nearing at least a short-term top.<\/p>\n No matter how bullish you might be on Bitcoin, it doesn’t make much sense to pay a 28% premium to own it by buying GBTC at the current level.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n In today’s mailbag, Market Minute <\/em>subscriber Don replies to Jeff’s cautionary tale in the Thanksgiving essay<\/a>…<\/p>\n Your cautionary point is well-founded Jeff, but I believe it’s a little premature. When the market becomes a “buying frenzy,” then it’s time to watch the buy-to-sell ratio and take your profits on the upslope. When the ratio starts favoring the selling side of the ratio, then that’s the time to unload, because that normally comes harder and faster than the upside.<\/p>\n We’re not, at this point, in a “frenzy,” but it’s coming. You’re certainly not clairvoyant – no more than anyone else. But you’re an extremely well-experienced & well-seasoned investor that simply knows what’s inevitably bound to happen. Many thanks for your warnings to the “little guys.” Everyone needs to be prepared, as does their portfolio.<\/p>\n – Don<\/strong><\/p>\n<\/blockquote>\n …From Jeff’s Friday essay<\/a>, Jeff Clark Trader<\/em> member Jack agrees with Jeff’s analysis…<\/p>\n I’m sure Jeff’s technical analysis is rock solid. I just think “the other shoe” is going to fall because of the shutdown. It just seems logical that with so many small businesses declaring bankruptcy, banks will eventually suffer – unless there’s a bailout I don’t know about.<\/p>\n – Jack<\/strong><\/p>\n<\/blockquote>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\nReader Mailbag<\/strong><\/h2>\n
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