After surging high at $41,500 in recent weeks, Bitcoin has been attempting in vain to breach the $40,000 level. The industry specialists have recognized as a significant point required to be shuttered for the preeminent cryptocurrency to recover steam. Bitcoin is trading at $33,300, according to CoinMarketCap.
Leading American bank JPMorgan Chase & Co. believes that Bitcoin reaching $40,000 is doubtful as Bitcoin investments by Grayscale are shriveling up. Investment banking giant JPMorgan has resolved that a noticeable slowdown in Grayscale’s Bitcoin fund inflows can cease the largest cryptocurrency from reaching the $40,000 mark again.
Grayscale, a leading cryptocurrency asset management firm, has been hovering the ball rolling in institutional investments as its Bitcoin portfolio was worth $23.69 billion by mid-January. JPMorgan strategists headed by Nikolaos Panigirtzoglou have remarked that Grayscale Bitcoin Trust appears to have risen based on four-week rolling averages.
JP Morgan on strategies adopted by momentum traders
JPMorgan also trusts that Bitcoin’s quest past $40,000 is being scratched by momentum traders, whose trading strategy involves purchasing the low and trading the high. As a consequence, they will proceed to endanger Bitcoin’s future positions. Notwithstanding Bitcoin’s recent consolidation, the famous cryptocurrency has experienced an extraordinary bull run. Thus, breaking the then all-time high (ATH) price of $20,000 established more than three years ago, mid-December 2020.
Later on, it exceeded $40,000. It has since retreated to the $33,000 level. Thus, symbolizing short-term weakness, as emphasized by crypto analyst Carl Martin. Institutional investments from corporate giants such as GrayScale, Microstrategy, and Square have been the powerhouse behind this grand BTC run. Moreover, it persists to be examined how these inflows issue in going forward.
Aside from apparently declining institutional demand, the Ethereum rally accompanied by double-digit profits in the decentralized finance sector. Earlier today, the largest altcoin succeeded to hit yet another all-time high of $1,460.
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