Grayscale holds the key to Bitcoin hitting $40K, says JPMorgan

Grayscale holds the key to Bitcoin hitting $40K, says JPMorgan

Grayscale Investments, the world’s largest digital-asset manager, could hold the key to Bitcoin’s (BTC) short-term price outlook, according to JPMorgan Chase. 

As Bloomberg reports, strategists led by Nikolas Panigirtzoglou believe Bitcoin could lose its luster over the short-term unless it can “break out” above $40,000. The flagship cryptocurrency breached that key level on two occasions this month, once in the lead-up to new all-time highs near $42,000 and the other just last week.

The strategists determined that the Grayscale Bitcoin Trust, which currently has $23 billion in assets under management, will play a crucial role in whether BTC returns to that level or not.

They wrote:

“The flow into the Grayscale Bitcoin Trust would likely need to sustain its US$100 million per day pace over the coming days and weeks for such a breakout to occur.”

If BTC fails to re-take $40,000, trend-following traders “could propagate the past week’s correction,” the analysts said. That means the path of least resistance could be lower.

Since breaching $20,000 in December, the Bitcoin price more than doubled in just three weeks. The digital currency has been rangebound in recent weeks as traders look for the next major catalyst.

In the meantime, Grayscale continues to exert considerable influence over the cryptocurrency market. Average weekly inflows into Grayscale’s digital-asset products reached $250.7 million in the fourth quarter, marking a new all-time high. The Bitcoin Trust generated $217.1 million in weekly inflows, on average.

As Cointelegraph reported last week, Bitcoin’s price rose sharply after Grayscale reopened its services to new investors on Jan. 13.

Title: Grayscale holds the key to Bitcoin hitting $40K, says JPMorgan
Sourced From: cointelegraph.com/news/grayscale-holds-the-key-to-bitcoin-hitting-40k-says-jpmorgan
Published Date: Mon, 18 Jan 2021 19:14:56 +0000

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Wayne Roberts

Wayne Roberts – Business News   I am Wayne Roberts, I have done my bachelor’s in English literature, and further on I did my master’s in business. My most preferred genre of writing is business and finance. I have been writing from the past 5 years about articles, web content, and blogs. In my career and education, I like to play along with work. I have also been a teacher in the past for 4 years. I use to teach business and technical writing in a very famous university. However, most recently I am working as an instructor, designer, and training writer. I enjoy socializing a lot. I am a very big extrovert when it comes to my nature. A part of all this I enjoy exploring the world and traveling make me happy.

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