The "Grayscale Effect," where GBTC trading impacts spot prices, has diminished significantly in 2025 due to the rise of multiple spot Bitcoin ETFs providing arbitrage mechanisms; GBTC now acts more as a follower than a leader of the market.
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Normalizing funding rates post-drop suggests that excess leverage was mostly cleared, reducing systemic risk and setting the stage for healthier price action, though vigilance is needed.
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From the token's economic model, the inflation mechanism affects long-term holders' returns. If inflation is high (e.g., annual inflation over 10%), the token supply increases rapidly, which may dilute the value of existing holdings, leading to lower long-term returns. Low and stable inflation (e.g., 2% to 5% annually) is more favorable, as it balances supply growth and value stability.
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