JPMorgan advises Bitcoin price might crash after sudden sell-off

Tuesday 19 January 2021 13:12 CET | News

As Bitcoin trades lower, analysts at Wall Street investment bank JPMorgan have warned there could be an investor exodus unless Bitcoin reclaims its USD 40,000 highs.

Bitcoin, after roaring through December 2020 and into the new year, has suddenly stalled. The Bitcoin price topped USD 42,000 per unit earlier in January 2021, double its 2017 high, but has struggled maintain its momentum, dropping to around USD 36,000 (even as smaller cryptocurrencies make massive gains).

Trend-following investors could begin to cash out if Bitcoin does not come back to full strength. Bitcoin investors looking to take profits from the huge price boom ‘could propagate the past week’s correction,’ and ‘momentum signals will naturally decay from here up till the end of March 2021,’ the analyst team at JPMorgan warned.

Many institutional investors looking for exposure to Bitcoin have piled into the Grayscale Bitcoin Trust over the 2020 year. In the last quarter of 2020, Grayscale raised USD 3.3 billion across its cryptocurrency investment vehicles, a record for the digital asset manager. Its popular Grayscale Bitcoin Trust averaged USD 217 million raised every week in the final three months of the year.

JPMorgan warned this pace will need to be maintained and even quickened for the Bitcoin price to break back above USD 40,000.

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Keywords: Bitcoin price, JPMorgan, cryptocurrency, crypto, investors, GBT, Bitcoin Trust, USD
Categories: DeFi & Crypto & Web3
Countries: World
This article is part of category

DeFi & Crypto & Web3