JPMorgan: Slowing Grayscale inflows would be a negative signal for Bitcoin’s price

The probability of a material decline in Bitcoin’s price would rise if inflows to the Grayscale Bitcoin Trust (GBTC), managed by Grayscale Investments, were to fall notably. This is the view of JPMorgan’s chief strategist Nikolaos Panigirtzoglou, writes Bloomberg.

As of December 18, the assets under management by Grayscale reached $15.5 billion (at the start of the year, on January 13, the figure was $2.3 billion). GBTC accounts for $13.1 billion, which represents 84.3% of total assets.

12/18/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $15.5 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/SZa61KZJFc

— Grayscale (@Grayscale) December 18, 2020

“It\’s hard not to say Bitcoin is overbought. It is also worth noting that inflows into GBTC are so large that no profit-taking by momentum traders can create a sustainable negative dynamic,” he wrote.

According to Panigirtzoglou, a substantial slowing of inflows to GBTC would raise the risk of a Bitcoin correction akin to that seen in the second half of 2019. After the June peak near $14,000, Bitcoin’s price by the end of last year had fallen by 44%.

On Saturday, December 19, the price of the first cryptocurrency rose to a new all-time high, surpassing the $24,000 mark.

Over the past week, investments in Bitcoin were announced by the investment company Ruffer Investment ($704 million) and hedge fund One River Asset Management ($600 million). Read more in digest.

On Monday, the price of the first cryptocurrency corrected to around $22,500 amid a substantial rise in trading volume.

Follow ForkLog news on Twitter!