Email was send successfully!
Please check your inbox for
our authentication email.
Thank you for registering
to Finance Magnates.
Please open the email we
sent you and click on the
link to verify your account.
WE RECOMMEND THE VIDEO: Impossible To Lose | 100% Real Strategy | 2 Indicator Ma + Aroon Oscillator Binary Option 2020
Impossible To Lose | 100% Real Strategy | 2 Indicator Ma + Aroon Oscillator Binary Option 2020 We make videos using this software bot which aims to make it ...
- FM Home
- CryptoCurrency
- News
- JPMorgan Presents Bitcoin Correction Scenario
JPMorgan Presents Bitcoin Correction Scenario
The Bank mentioned a strong case of Bitcoin correction if funds into the Grayscale Trust slow down dramatically.
JPMorgan, one of the largest investment banks in the world, mentioned in a research note today that there is a strong chance of Bitcoin correction if the flow of funds into the Grayscale Bitcoin Trust slows down significantly.
According to the research note, JPMorgan strategist, Nikolaos Panigirtzoglou said that it is extremely difficult to avoid describing Bitcoin as overbought as the recent rally pushed the price of BTC to a level beyond fundamentals.
“While it is hard to avoid describing Bitcoin as overbought, the flows into the Grayscale Bitcoin Trust are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics. A major slowdown in those flows would boost the risk of a Bitcoin correction akin to the one in the second half of 2019,” the note added.
Grayscale is the world’s largest crypto asset management firm with more than $14 billion in assets under management. Bitcoin is the top holding of the asset manager as Grayscale has more than 570K BTC worth around $13.5 billion.
Suggested articles
Are Alternative Payment Methods the New Banking King?Go to article >>
Additionally, Grayscale has reported a significant rise in interest in Ethereum-related investment products. The company has nearly 2.94 million ETH worth approximately $1.9 billion.
JPMorgan’s Bitcoin Prediction
Recently, JPMorgan published a research note and predicted $600 billion bitcoin demand from institutional investors. The bank mentioned that even 1% of asset allocation by large financial companies would result in around $0.6 trillion Bitcoin demand. As of writing the price of Bitcoin is hovering around $22,000 after posting strong gains last week. Institutional investors are adding crypto assets to their portfolios. Earlier this month, The US-based financial services firm with more than 5 million clients worldwide, Massachusetts Mutual Life Insurance (MassMutual) revealed an investment of around $100 million in Bitcoin in an effort to diversify its portfolio.
The recent note indicates the importance of Grayscale in the cryptocurrency market. Large institutions and Bitcoin whales play an important role in market sentiment.