3 ways this Bitcoin bull run is different than late 2020

GBTC keeps its steep discount
Despite going from $29,000 to $48,000 in just one month, Bitcoin is still not seeing a frenzy of interest and buying. Higher price levels have seen solid support, but there is little evidence of the kind of demand that characterized the start of this year or the end of the last. A case in point is the Grayscale Bitcoin Trust (GBTC), which continues to trade at a discount of around 13% to spot price this week. Even though Bitcoin has increased in price, GBTC demand has not entirely increased in step, and even the discounted rate is not being treated as a steal by many institutional investors.

Funding rates lag price performance
Two more factors singling out the current Bitcoin market structure are low open interest on Bitcoin futures and lower-than-expected funding rates. Both contrast with the start of the 2020 bull run and go against the grain, given the pace of price increases over the past month. “In the time that we’ve seen $BTC move from $30K → $48K, open interest has fallen, and the bitcoin perp. funding rate is still relatively low (albeit positive),” Humiston added. “Neither have really followed BTC’s massive rally, which comes as a surprise and isn’t really normal.” Nonetheless, funding rates are now more positive than at any time since the May price crash.

3 ways this Bitcoin bull run is different than late 2020, Cointelegraph, Aug 17