Fun

JPMorgan Warns of Bitcoin Correction, Describing BTC as Overbought

News Feed - 2020-12-23 02:12:07

JPMorgan Warns of Bitcoin Correction, Describing BTC as Overbought


JPMorgan’s analysts have warned about the odds of a bitcoin correction which would increase if the flows into Grayscale’s bitcoin trust slow significantly. The analysts indicated that bitcoin is “overbought.” JPMorgan Reveals Bitcoin’s Outlook


The analysts at JPMorgan Chase & Co. gave their bitcoin prediction in a note on Friday. They explained that flows into Grayscale’s bitcoin trust are key to the outlook of the cryptocurrency, Bloomberg reported Monday. According to the publication, the analysts believe: The odds of a bitcoin correction would increase if the flows into the world’s largest traded cryptocurrency fund slow significantly.


The JPMorgan analysts further indicated that bitcoin was likely “overbought” after the recent rally. They clarified that the flows into the Grayscale Bitcoin Trust “are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics.” They emphasized that “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 news outlet conveyed.



Grayscale Investments has about 15.7 billion in assets under management as of Dec. 21, with its bitcoin trust leading the pool with more than $13.34 billion. Inflows into the fund are running at about $1 billion per month, the JPMorgan analysts noted.


Institutional investors are increasingly interested in bitcoin. The firm previously stated that investors had been moving their money from gold exchange-traded funds (ETFs) into Grayscale’s bitcoin trust. Following a $100 million investment in BTC from insurance giant Massmutual, JPMorgan said that they anticipated a $600 billion demand for bitcoin.


What do you think about JPMorgan’s bitcoin prediction? Let us know in the comments section below. Microstrategy Buys 29,646 More Bitcoins — Now Holds Over $1.6 Billion in BTC MARKETS AND PRICES | 1 day ago Goldman Sachs Calls Bitcoin "the Retail Inflation Hedge" That"s Not a Threat to Gold MARKETS AND PRICES | 2 days ago Tags in this story bitcoin correction, bitcoin overbought, bitcoin prediction, jp morgan bitcoin, jpm, jpmorgan bitcoin, jpmorgan bitcoin prediction, jpmorgan btc, jpmorgan warning


Image Credits: Shutterstock, Pixabay, Wiki Commons Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

India’s Central Bank RBI Still Has ‘Serious Concerns’ About Cryptocurrency
India"s Central Bank RBI Still Has "Serious Concerns" About Cryptocurrency The governor of the Reserve Bank of India (RBI), Shaktikanta Das, has once again expressed concerns regar
Coinbase shares slump, but Base revenue signals it’s undervalued — Analyst
Ciaran Lyons2 hours agoCoinbase shares slump, but Base revenue signals it’s undervalued — AnalystCrypto analyst Will Clemente believes Coinbase is “the biggest kind of venture style bet in public markets” since T
Tim Draper Bullish on Bitcoin Due to Its Inflation Hedge Traits
Tim Draper Bullish on Bitcoin Due to Its Inflation Hedge Traits Tim Draper, an early bitcoin investor, has declared he is still optimistic about the value of the first cryptocurren
Colombia to Use Ripple Ledger to Issue Land Registry Certificates
Colombia to Use Ripple Ledger to Issue Land Registry Certificates The government of Colombia announced a new system that will allow it to use the Ripple Ledger to store and authent
William Suberg15 hours agoGBTC Bitcoin ‘discount’ may be gone by 2024 as share price gains 17%GBTC shares trading at a lower implied value to BTC price may soon be a thing of the past, a new prediction says.5006 Tota
Pike Finance exploited for $1.6M in second incident in 3 days
Zoltan Vardai13 hours agoPike Finance exploited for $1.6M in second incident in 3 daysA smart contract vulnerability led to nearly $2 million worth of lost funds within three days on Pike Finance, which is offering a 20%
Shiba Inu Price Eyes 250% Surge Amid Falling Wedge Breakout
Este artículo también está disponible en español. Recent analysis reveals that the Shiba Inu price has formed a Falling Wedge pattern and is on the verge of breaking abov
Ethereum Pulls Back 10% But Holds Monthly Gains – Is The Next Pump Loading?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Address poisoning attacker sends $153K ETH to victim and agrees to negotiate
Christopher Roark5 hours agoAddress poisoning attacker sends $153K ETH to victim and agrees to negotiateThe attacker who pulled off a $68 million address poisoning scam has posted two messages agreeing to negotiate with
Biden’s Homeland Security team taps tech elite for AI defense board
Tristan Greene4 hours agoBiden’s Homeland Security team taps tech elite for AI defense boardThe board includes the CEOs of Adobe, Alphabet, Anthropic, AMD, AWS, IBM, Microsoft and Nvidia, as well as other business, civ
Mastercard Report: 51% of Survey Respondents Have Completed a Cryptocurrency Transaction in Latam
Mastercard Report: 51% of Survey Respondents Have Completed a Cryptocurrency Transaction in Latam A new report issued by Mastercard, the payment processing giant, has found that mo
Cheap Power Brings Bitcoin Mining Boom to Venezuela as Country Moves Toward Digital Economy
Cheap Power Brings Bitcoin Mining Boom to Venezuela as Country Moves Toward Digital Economy The very low power rates in Venezuela have created a powerful incentive to mine Bitcoin