Bitcoin risks further decline unless it breaks above $ 40,000 soon, analysts at JPMorgan Chase & Co.
According to strategist Nikolaos Panigirtzoglu, trend-following investors who would prefer to exit the market if they do not receive confirmation of upward dynamics may exert negative pressure. An important indicator in this regard is the Grayscale Bitcoin Trust.
“The inflow of assets into the Grayscale Bitcoin Trust will likely need to remain at about $ 100 million a day over the coming days and weeks for such a breakthrough to occur,” he wrote in a note to clients on Friday.
Analysts at JPMorgan believe that Bitcoin was in a similar position in November, when it tested previous all-time highs of around $ 20,000. The influx of institutional assets into the multibillion-dollar Grayscale trust then helped the cryptocurrency continue to rise, they write.
If Panigirtzoglu and his colleagues are right and the fate of the further rally depends on Grayscale clients, the outlook for Bitcoin is very positive. Grayscale CEO Michael Sonnenschein said his company recorded its largest single-day asset inflow on Friday.
1/15/2021 was also our largest single asset raise day, ever.
– Michael Sonnenshein (@Sonnenshein) January 16, 2021
“Yesterday Grayscale raised over $ 700 million in its product line. The impetus that formed in the fourth quarter seems to be gaining momentum in the new year, ”he wrote.
Bloomberg Senior ETF Analyst Erik Balchunas compares Grayscale to innovation-focused ARK Invest:
Grayscale is the ARK of crypto .. https://t.co/ZaBpJ71a8E
– Eric Balchunas (@EricBalchunas) January 16, 2021
“The similarities are amazing. Both remained in relative oblivion for 3-4 years, had about $ 2 billion 12 months ago, and then grew 10 times. Both ignore trends: ARK with stock picks and Grayscale with very high commissions and premiums over 20%. “
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