Bitcoin: The long-awaited correction
Bitcoin correction driven by capital inflows at Grayscale – JPMorgan
Bitcoin’s future depends on capital inflows at Grayscale, JPMorgan says
Major players continue to buy BTC on OTC transactions
The Bitcoin market is too overbought, which will create a negative trend at any time, the bank analysts say
Bitcoin price movement directly depends on the flow of funds to the Grayscale cryptocurrency fund, according to the experts of the American bank
Bitcoin will begin a correction when the flow of investments in the world of the Grayscale Investments crypto fund dries up. At least that’s what JPMorgan analysts think, Bloomberg writes..
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On moment of writing Grayscale Bitcoin Trust’s Assets Grow to $ 15 Billion.
Back in December 2019, this figure was $ 2 billion.Thus, monthly investors pour about $ 1 billion into the fund..
JPMorgan believes that the capital inflow into the crypto fund is large enough to “create a sustained negative price trend” in the market. According to analysts, if the trend begins to weaken, the risk of a correction of the first cryptocurrency will sharply increase.
Meanwhile, institutional investors have long been interested in Bitcoin..
In addition to investments from Sqaure and MicroStrategy, such giants as MassMutual, Standard Chartered and Fidelity have also increased their positions in the cryptocurrency market..
Bitcoin updated historical maximum, overstepping the $ 24,000 mark, and institutions still continue to buy the coin.
Key Young J, head of CryptoQuant, said earlier that according to on-chain activity data, most large investors buy BTC on OTC markets..
According to experts from PricewaterhouseCoopers (PwC), the current rally is due not so much to the effects of the pandemic and quantitative easing, but rather to the availability of regulated infrastructure. Henry Arslanyan, head of fintech and cryptoindustry in the Asian region at PwС, shares JPMorgan’s position and believes that the future of bitcoin prices directly depends on the number of institutions in the market.
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