JPMorgan analysts have warned of bitcoin correction odds that would increase if flows to Grayscale’s bitcoin trust slowed significantly. Analysts described bitcoin as “over-thinking.”
JPMorgan Reveals Bitcoin Forecast
The analysts at JPMorgan Chase & Co. donated. their bitcoin prediction in a note on Friday. They made it clear that flows to the Grayscale bitcoin trust were key to the cryptocurrency’s prospects, Bloomberg reported Monday. According to the announcement, analysts believe:
Bitcoin correction odds would increase if flows to the world’s largest commercial cryptocurrency fund slowed significantly.
JPMorgan analysts further noted that bitcoin was likely to “over-think” after the recent rally. They explained that the flows to the Grayscale Bitcoin Trust were “too large to allow any unblocking position by momentum traders to generate ongoing negative price dynamics.” They emphasized that “a major slowdown in those flows would boost the risk of a bitcoin correction similar to that in the second half of 2019,” the news outlet conveyed.
Grayscale Investments has approximately 15.7 billion in assets under management as of December 21, with its bitcoin trust leading the mine with more than $ 13.34 billion. Inflows to the fund run at about $ 1 billion a month, analysts noted JPMorgan.
Institutional investors are increasingly interested in bitcoin. The company previously noted that investors have been moving their money from gold exchange trading funds (ETFs) to the Grayscale bitcoin trust. Following a $ 100 million investment in BTC by the insurance giant Massmutual, JPMorgan said they are anticipating a $ 600 billion demand for bitcoin.
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