In a note published on Friday, JPMorgan strategists noted that the pace of flows into the $20 billion Grayscale Bitcoin Trust “appears to have peaked” based on four-week rolling averages, leading to a belief that Bitcoin will struggle to break out above $40,000 in the near-term.
“At the moment, the institutional flow impulse behind the Grayscale Bitcoin Trust is not strong enough for BTC to break out above $40,000.” The strategists noted, while also adding that the “risk is that momentum traders will continue to unwind Bitcoin futures positions.”
The fund dropped by 22% over the past two weeks. Eclipsing that of Bitcoin which fell 17% over the same period.
Bitcoin reached a peak of nearly $42,000 on January 8. Proponents of Bitcoin believe institutional interest helped to boost Bitcoin’s use as a hedge against dollar weakness and inflation. Skeptics on the other hand, believe it to be just the latest speculative bubble. Much like the one in 2017 which preceded a massive collapse.
Recently, Bitcoin’s price has been volatile, trading in the mid-$30,000 range, but it has still gained by 270% over the past year.
Meanwhile, Adam James of OKEx Insights found that some Bitcoin “whales” and miners sold to institutional investors during the rally in 2020. As the average age of coins traded have risen stayed elevated since October.
The recent Federal Open Market Committee (FOMC) decision, along with some technical cues, could be…
Grand Cayman, Cayman Islands, May 3rd, 2024, ChainwireProtocol launches, growth trajectory, and industry-leading technology point…
EYWA, a consensus bridge that secures transactions across multiple protocols, has raised a total of…
StakingFarm is proud to announce the launch of its groundbreaking Bitcoin liquid staking product, a pioneering…
Rahaman Kargar, founder of Blockchain Asset Management, proudly announces the launch of its blockchain fund tailored…
Trace Labs, the core developers of OriginTrail, has joined the European Union's initiative to foster a…