LINK Bumps Higher As Altcoin Market Begins Recovering: Analysis

LINK bumps higher as the altcoin market starts recovering but also because Grayscale’s CEO hinted of an unknown announcement that could have sparked the price upwards but let’s first read into it some more in our chainlink news today.

The seventh-biggest cryptocurrency increased by 5% in the past 24 hours and made It the top-performing altcoin in the top 10 by market cap. Right now it is trading at all-time highs as it broke out of the consolidation against BTC and the US dollar a few weeks ago.  The power that LINK had came as Grayscale’s chief executive hinted of an upcoming announcement that many expected to involve the cryptocurrency. A few minutes ago, Michael Sonnenshein who is the CEO of Grayscale Investments posted:

“stay tuned CT, @Grayscale and I have something good for you in the AM! (yes, that was the announcement of the announcement).”

stay tuned CT, @Grayscale and I have something good for you in the AM!

(yes, that was the announcement of the announcement)

— Michael Sonnenshein (@Sonnenshein) January 24, 2021

As it can be seen, the tweet is quite vague but considering the latest company’s filings, many believe that this relates to potential altcoin investment vehicles that will be launched by the asset manager. Grayscale Investments is mainly focused on allowing institutional players to obtain exposure to BTC and ETH while most of the assets under management are put in BTC and ETH positions while the company offers investment vehicles for the assets on the risk curve.

Grayscale Chainlink Trust (LINK)

Filed on December 18th, 2020 as a Delaware Domestic Statutory Trust

Is it real or just an elaborate larp? Only time will tellhttps://t.co/ej4bYWysYz#Chainlink $LINK pic.twitter.com/bLZP5Jnwvw

— ChainLinkGod.eth (@ChainLinkGod) January 21, 2021

The rumors started spreading when LINK along with other altcoins that were popular in the 2017 and 2018 bull market, is about to be added to Grayscale’s umbrella in a number of new Trusts which are seen as the preferred investment vehicles. Documents were spotted online for a Chainlink Trust that was established on December 18 as Delaware Domestic Statutory Trust which fueled the speculation that the asset will be added to LINK.

The reason why this is very important is that it is believed that the inflows into the different trust of Grayscale are critical in driving the market higher. The company services institutional players that drained over $3 billion worth of capital into the crypto market via the fourth quarter of the company in 2020. As LINK bumps higher, the entire market was seeing some price swings. The ghost chains can be dead but DeFi coins are undergoing a true re-rating as coins are up by 30 percent in the past day.