JPMorgan analysts see $ 40,000 as a key bitcoin bitcoin that bullish traders must reclaim to continue the cryptocurrency’s meteoric rise.
According to a Bloomberg report on Monday, unless the price of bitcoins can reach more than $ 40,000, the cryptocurrency could see even worse.
A larger contribution from the multibillion-dollar bitcoin trust fund owned by digital asset manager Grayscale Investments is needed to keep prices above this key level, according to JPMorgan strategists and Nikolaos Panigirtzoglu, head of global market strategy. The analysis also took into account the demand for bitcoin futures.
The bearish outlook is likely to be triggered by a number of traders exiting the market due to a potential change in the short-term trend and a lack of additional institutional flows, the report said.
“The flow in the Grayscale Bitcoin Trust Trust is likely to have to keep pace at $ 1
Grayscale announced on Saturday that it has raised its biggest one-day raise in the company’s existence, adding more than $ 700 million to its family of products, including bitcoin.
How long the digital asset manager can maintain these levels remains unclear.
Analysts said that bitcoin is now in a similar position as in November 2020, when bitcoin was playing at around $ 20,000. On December 16, bitcoin crossed the $ 20,000 mark, which JPMorgan analysts attribute to Grayscale’s market share. Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.
Traders “could spread last week’s correction,” JPMorgan analysts also said, citing a sharp 20 percent drop in the value of bitcoins on January 10, before a partial recovery caused by opportunists.
If bitcoin fails to recoup $ 40,000, “momentum signals will naturally dissipate by the end of March,” analysts said in the report.
During the press, bitcoins traded at $ 37,250, which is 2% more in 24 hours.
EDITING (13:45 UTC, 19 January 2021): Corrected misuse of the 2017 date in the fourth paragraph below.