Analysts at JPMorgan Chase & Co said that Bitcoin (BTC) would have to face a future downfall if it does not make a tough move upwards to $40,000. This reported as a decline that could portend more losses based on the analysis.
BTC will see a consistent profit-booking unless it registers a strong “break-out” at this stage, said the analysts. Currently, a close on demand is being kept for Bitcoin Futures as well as institutional inflows into the Grayscale Bitcoin Trust (GBTC), said Nikolaos Panigirtzoglou, the head strategist at JPMorgan.
The world’s largest cryptocurrency, Bitcoin (BTC) moved past $41,500 levels on January 10. Ever since it continues to remain under downward pressure. BTC has passed a milestone at $30,000 two times while drawing back partially. At press time, Bitcoin (BTC) has a market cap of $650 billion and is 3.76% down trading at $35,086 levels.
Past week, Grayscale Bitcoin Trust bought 10,000 Bitcoins after increasing a huge sum of $700 million in its largest single-day ri\aise in the year 2021. As BTC continues to trade indirectly, the Grayscale Bitcoin Trust (GBTC) has once again settled to buying heavily.
Grayscale Bitcoin Trust still has another $400 million aside from the amount it raised recently. It cost around $300 million of the fund infusion to the company for Grayscale’s buying of 10,000 In a recent message to clients on January 15 the JPMorgan analysts said:
“The flow into the Grayscale Bitcoin Trust would likely need to sustain its $100 million per day pace over the coming days and weeks for such a breakout to occur”.
Grayscale has been a shopaholic over Bitcoin ever since the start of December 2020. $23 billion in assets are under management with the Grayscale Bitcoin Trust (GBTC) holding. On the other side, what saw a very fast rallying into 2021 with a shooting of 33% in just the first 10 days of the year was Bitcoin. Bitcoin is still 15% positive year-to-date, at the current price.
Grayscale, which is the world’s largest digital currency manager, stated on Thursday (January 14) that its assets under management swelled more than 900% to $20.2 billion at the end of last year. The reason behind it being the record inflows in the fourth quarter and the increase in the price of Bitcoin.
Trend-following traders “could propagate the past week’s correction” and “momentum signals will naturally decay from here up till the end of March”.
Said JPMorgan analysts taking into account the effect if BTC fails to conquer $40,000 levels.