Is Bitcoin $40,000 In The Cards? | Here’s What You Need To Know
Bitcoin won’t break through $ 40,000 due to weak institutional demand
Interest in bitcoin is waning, JPMorgan says
Falling cash flow at Grayscale signals correction
The society expects the preservation of the exchange rate at the level of $ 25,000 – $ 50,000
Bitcoin price is unlikely to be able to overcome the $ 40 thousand mark.
due to insufficient purchasing pressure from institutions
Bitcoin loses the strength needed to overcome the key psychological mark of $ 40 thousand.
Bloomberg reports this with reference to JPMorgan analysts.
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According to experts, the flow of money into the bitcoin trust Grayscale Bitcoin Trust (GBTC) may have reached its climax.
“Now the influx of institutional money into the Grayscale Bitcoin Trust is not strong enough for bitcoin to overcome $ 40 thousand,” experts said..
The bank is of the opinion that traders adhering to impulse strategies will continue to exit bitcoin futures positions, which will negatively affect the price of cryptocurrency.
JPMorgan experts talked about the dependence of the Bitcoin rally on the flow of money into GBTC earlier. Then JPMorgan said that the reduction in investment in GBTC will be a signal for the correction of the leading cryptocurrency.
Assets of GBTC. Source: bybt.com
It is worth noting, however, that this is not the first time that the inflow of institutional funds to GBTC has been declining. Previously, however, bitcoin did not experience such large drawdowns in price. Over the past couple of weeks, the first cryptocurrency sank by more than 15%.
JPMorgan experts have long been largely skeptical about Bitcoin. So, for example, the bank doubts that Bitcoin is able to hedge risks.
According to JPMorgan, due to large drawdowns and high correlation with cyclical assets, Bitcoin depends on the economic situation.
Meanwhile, according to a survey by Bitwise Asset Management, more than 30% of respondents stated that the price of bitcoin remained in the region of $ 25,000 – $ 50,000. Much less (1%) believe that the cryptocurrency will collapse to $ 7,000 – $ 10,000.
Bitcoin price BTC / USDT on moment of writing is $ 33,337. The cryptocurrency is still trying to stay above the $ 30 thousand level, although it has already tried to break through this minimum several times. Read about what awaits cryptocurrency in 2021 in a special material from BeInCrypto.
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