JPMorgan issues warning for Bitcoin price crashes after sudden sellout of Bitcoin

Bitcoin boomed after December into the new year, suddenly stalling.

The bitcoin price rose above $ 42,000 per bitcoin earlier this month, double the 2017 high, but struggled to maintain its momentum and dropped to around $ 36,000 (even though smaller cryptocurrencies made big gains)

Now, as bitcoin trades sideways, analysts at Wall Street giant JPMorgan

JPM
warned that there could be an exodus of investors unless bitcoin regains its $ 40,000 highs.

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Unless bitcoin could soon break out more than $ 40,000, the next investors could start making money, JPMorgan analysts write in a note first reported by Bloomberg.

Bitcoin investors looking to profit from the giant boom in bitcoin could propagate last week’s correction, and ‘momentum signals will obviously expire by this end of March’, the analysts warned.

The bitcoin price has added a whopping nearly 300% since October, causing institute investors to rise the cryptocurrency and payment giants like PayPal.

PYPL
add their support.

Many institutional investors looking for bitcoin exposure have piled up in the Grayscale Bitcoin Trust over the past year. In the last quarter of 2020, Grayscale raised $ 3.3 billion for its cryptocurrency investment vehicles, a record for the digital asset manager. Its popular Grayscale Bitcoin Trust has raised an average of $ 217 million a week in the last three months of the year.

JPMorgan warned that this pace must be maintained and even accelerated for the bitcoin price to break back above $ 40,000.

“The inflow to the Grayscale Bitcoin Trust is likely to have to sustain its $ 100 million a day pace in the coming days and weeks to find such an outbreak,” according to JPMorgan strategists.

But the perhaps conservative estimate of demand, with Michael Sonnenshein, the newly-appointed CEO of Grayscale, revealing over the weekend that the company raised just over $ 700 million on Friday. tweet “It looks like the momentum from the fourth quarter is accelerating in the new year.”

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Elsewhere, other bitcoin and crypto market viewers, still obscured by bitcoin’s big December rally, remain generally upbeat.

“Bitcoin could not exceed the $ 40,000 threshold again, and remains within a corrective scenario,” FxPro senior financial analyst Alex Kuptsikevich said in an email.

“Nevertheless, the support level of about $ 35,000 has not been broken, and crypto-market participants are not panicking. Early in 2021, the focus will be on renewed investments from large capital, as well as the volumes of PayPal and other large companies that have their interest in the cryptocurrency market announced. ‘