The downward trend of Bitcoin appears limited as profit-taking in GBTC has largely concluded, according to JPMorgan analysts, reports The Block.
This assessment is based on the $4.3 billion outflow from the product since its conversion from a trust to an ETF, surpassing the bank’s forecast of $3 billion.
Bloomberg analyst Eric Balchunas also noted the slowdown in GBTC fund withdrawals.
$GBTC outflows today were ‘only’ $425m, lowest bleed since day one and seemingly trending down. That said it’s still a pretty large number. Source: Bloomberg terminal
— Eric Balchunas (@EricBalchunas) January 25, 2024
“Today’s outflow was ‘only’ $425 million, the lowest since day one. There is clearly a downward trend. Nevertheless, it’s still quite a large figure,” he wrote.
JPMorgan noted that outflows from Grayscale’s Bitcoin ETF could persist without a reduction in its management fee.
“GBTC has two new competitors — BlackRock and Fidelity. They have attracted $1.9 billion and $1.8 billion respectively. Both have much lower fees — only 25 basis points compared to Grayscale’s 150 basis points,” the review stated.
Experts also highlighted the increased market depth and liquidity in the digital gold market following the launch of these products, which has improved pricing efficiency.
Matrixport analysts identified GBTC sales and restrained interest in spot Bitcoin ETFs from TradFi as drivers for the anticipated price drop to the support level of $36,739. They believe prices will rebound from this level as overall liquidity and the macroeconomic environment remain favorable.
A January 26 Matrixport research report predicted that Bitcoin will fall to the support level of $36,739, and the price will rebound from this support level, as the overall liquidity and macro environment remain supportive. It noted that TradeFi’s interest in a Bitcoin spot ETF…
— Wu Blockchain (@WuBlockchain) January 26, 2024
Bitfinex experts identified the $36,000 level as a benchmark for the end of the correction.
Technical analyst Ali illustrated price patterns from the last two cycles of the leading cryptocurrency and suggested a further decline in the coin’s rate. He does not rule out a drop to $32,700.
Former BitMEX CEO Arthur Hayes previously stated that Bitcoin could fall to $35,000 in the short term amid “excessive” inflation.