JPMorgan Presents Bitcoin Correction Scenario

JPMorgan, one of the largest investment banks in the world, mentioned in a research note today that there is a strong chance of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term 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.

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.