JPMorgan Sees Downward Pressure Easing for Bitcoin as Grayscale Profit-Taking Fades

Global investment bank JPMorgan says that profit-taking from Grayscale’s bitcoin trust (GBTC) has largely happened already. “This would imply that most of the downward pressure on bitcoin from that channel should be largely behind us,” the bank’s analyst explained.

JPMorgan’s Bitcoin Price Outlook

Global investment bank JPMorgan weighed in on the crypto market again this week following a bitcoin selloff that saw the price of BTC dropping from above $47K before the spot bitcoin exchange-traded fund (ETF) approvals to below $39K this week.

The bitcoin selloff is accompanied by massive outflows from Grayscale’s bitcoin trust (GBTC), which converted into a spot bitcoin ETF following the approval by the U.S. Securities and Exchange Commission (SEC) on Jan. 10. Since Jan. 12, GBTC’s bitcoin holdings have decreased by 114,367.39 BTC, equivalent to $4.77 billion, based on the BTC exchange rates as of Jan. 27.

On Thursday, JPMorgan strategist Nikolaos Panigirtzoglou said: “Given $4.3b has come out already from GBTC, we conclude that GBTC profit taking has largely happened already.” The analyst added:

This would imply that most of the downward pressure on bitcoin from that channel should be largely behind us.

Last week, Panigirtzoglou predicted that $3 billion would exit GBTC, building on his earlier estimate that up to $3 billion had been invested into GBTC in the secondary market during 2023 to take advantage of the discount to NAV. He explained that as this $3 billion leaves the bitcoin space through GBTC profit-taking, bitcoin’s price will face downward pressure.

Sharing a similar view, Needham’s John Todaro said in a note that Thursday “registered one of the lowest days in net outflows from GBTC and the third consecutive day of declining outflows, which could indicate the beginning of a slowdown in redemptions.” He emphasized: “While it has been difficult to quantify how much more should come out of GBTC, we believe two of the largest drivers of selling [– outflows driven by the FTX estate and arbitrage funds –] are nearly done.”

This week, another JPMorgan analyst, Kenneth Worthington, said: “We think the catalyst in bitcoin ETFs that has pushed the ecosystem out of its winter will disappoint market participants.” The investment bank downgraded Coinbase stock (Nasdaq: COIN) from Neutral to Underweight.

Do you think JPMorgan analyst Nikolaos Panigirtzoglou is right about the price of bitcoin? Let us know in the comments section below.



from Bitcoin News https://ift.tt/rvXH41O

Comments

Post a Comment

Popular posts from this blog

L2 Crypto Project Blast Achieves $660M TVL Amid Mockery for Key Developer Recruitment

Image
Recent data reveals that Blast, the new layer two (L2) blockchain platform, has amassed a significant $660 million in value within its decentralized finance (defi) protocol. Concurrently, while accumulating a variety of crypto assets, the initiative has commenced a search for experienced senior blockchain developers. While Amassing $660M, L2 Blast Project Searches for Developers In recent times, Blast has emerged as a focal point of interest. This project, conceptualized by Pacman , the mind behind the non-fungible token (NFT) marketplace Blur, has rapidly gained traction. Within a span of less than a week, the platform’s total value locked (TVL) soared to approximately $400 million. Concurrently, Blast faced allegations of resembling a Ponzi scheme. During this period, Paradigm, a principal investor in the project, admitted that the team had overstepped in certain aspects of communication and implementation. Pacman has also countered the Ponzi scheme allegations and further cl
Read more

Harsh Laws Make Bitcoin Holders Consider Renunciation or Dual Citizenship

Image
As digital currencies become a mainstay in society, a great number of governments have enforced strict tax guidelines, severe money transmission rules, and tough regulations. Because of a few nation-states’ harsh rules against cryptos, there are individuals who plan to renounce their citizenship in order to become stateless. Some people will also attempt to get double-citizenship, as both of these acts may help sovereign individuals avoid government intrusion and theft. Also Read: As FATF Regulations Galvanize, Crypto Mixing Applications Are Targeted A Cryptocurrency Advocate’s Quest for Financial Sovereignty May Involve Hard Choices It’s been close to 11 years since the inception of Bitcoin and during the last few years government agencies and law enforcement have been cracking down on digital currency holders. In certain areas around the world, a few countries have extremely difficult crypto laws and stringent capital gains taxes. Countries like the U.S. have imposed strict regul
Read more

2021 Bitcoin Price Predictions: Analysts Forecast BTC Values Will Range Between Zero to $600K

Image
As bitcoin has touched new price highs on Thursday nearing the $50k handle, people have been curious as to where the price will go in the future. Meanwhile, despite the gains so far, a number of luminaries, analysts, executives, and proponents from the crypto space believe the leading crypto asset will reach between $60k to six-digits this year. Mike Novogratz Predicts $100K Bitcoin: ‘Other CFOs and CEOs Are Saying, What Should We Be Doing?’ Satoshi Nakamoto’s invention has gained mass appeal in recent times as the leading digital asset bitcoin ( BTC ) has reached its highest value ever in 2021. On Thursday morning (EST), BTC spiked to an all-time high (ATH) at $48,697 per unit. Earlier in the morning at around 2 a.m., bitcoin was exchanging hands for $44,485 and saw an 8.98% increase since then. At the time of publication, at 6:30 p.m. (EST) on February 11, 2021, bitcoin (BTC) is swapping for $47,821 per coin. With BTC so close to the $50k mark, people have been forecasting
Read more