Cryptocurrency enthusiasts who expect Bitcoin to bounce above the $ 40,000 level are being sued by JPMorgan Chase & Co.
The rate flows into the $ 20 billion JPMorgan strategists led by Nikolaos Panigirtzoglou said on Friday that the gray-scale Bitcoin Trust had peaked based on four-week moving averages. The fund declined by 22% over the past two weeks to January 22, surpassing a 17% drop in Bitcoin over the same period.
Read: 40% premium of the largest Crypto fund evaporates during the meltdown
“Right now, the institutional flow impetus behind the Grayscale Bitcoin Trust is not strong enough for Bitcoin to break above $ 40,000,” the strategists said. They added that the “risk is that momentum traders will continue to withdraw Bitcoin futures positions.”
Bitcoin’s red-hot rally lost momentum after the largest cryptocurrency peaked at nearly $ 42,000 on January 8th. Proponents of her case have been working to make the actual transcript of this statement available online. rapid collapse preceded.
“The short-term balance of risks remains skewed to the downside,” JPMorgan strategists said.
In a separate analysis, Adam James with OKEx Insights found at least some long-term Bitcoin holders – so-called “whales” – and miners were likely to sell to institutional investors during the 2020 rally as the average age of traded coins rose. in October and has remained elevated ever since.
“Old-school Bitcoiners have sold some of their old bags to new institutional buyers with extremely large new bags to fill,” James wrote. OKEx Insights is connected to the crypto exchange OKEx.
Bitcoin rose about 2% to $ 32,700 in Tokyo on Monday. The digital currency has continued to make a profit of about 260% over the past year, despite pouring in about $ 10,000 from the everyday high of this month.