Shares of Grayscale Bitcoin Trust (OTC:GBTC) dropped as much as 13.3% in early trading on Monday. The stock gained back some of those losses late in the day and is down 4.1% at 3:30 p.m. EST.
As a Bitcoin (CRYPTO:BTC) investment vehicle, Grayscale’s drop has been driven entirely by the loss of value in Bitcoin over the past day. According to Coin Desk, Bitcoin peaked at $58,206.65 yesterday afternoon only to see its value drop to $47,780.75 in early trading on Monday.
Bitcoin has been extremely volatile over the past six months, but its value has been rising over that time as well. Today, Bitcoin reversed course and dropped rapidly just as traders began worrying that rising interest rates will slow the economy and potentially impact cryptocurrency stocks.
If you’re invested in Grayscale Bitcoin Trust, you should be ready to accept the volatility that comes with cryptocurrencies. Drops like we saw today are par for the course for these kind of assets and Bitcoin can just as easily jump tomorrow as it could continue its drop. Either way, this stock will follow Bitcoin and that’s exactly what investors are hoping for.