arrow-up
Market Musings

JPMorgan: Bitcoin Needs to Break $40,000 Again Soon — Or This Will Happen

By
Published on:
January 19, 2021

According to the bank's strategists, it's worth keeping a close eye on flows into the Grayscale Bitcoin Trust.

Table of Contents

Bitcoin needs to break $40,000 soon or it could suffer an exodus of “trend-following investors,” JPMorgan strategists have warned.

 

According to Bloomberg, all eyes should be on the Grayscale Bitcoin Trust — and the investment bank believes flows into this fund will need to remain above $100 million per day for several weeks if another breakout is to occur.

 

The JPMorgan team drew parallels with late November, when institutional interest in Grayscale’s trust extended Bitcoin’s rally.

 

Even though supporters of BTC argue that the world’s biggest cryptocurrency offers a valuable hedge against a weakening dollar, others quoted by Bloomberg believe that Bitcoin remains far too risky for large institutions. Chris Iggo of Axa Investment Managers said:

“For assets to be considered in a long-term investment portfolio one should be able to attach some fundamental intrinsic value to them.”

If daily flows of $100 million into the Grayscale Bitcoin Trust seem highly ambitious, it’s worth noting that data suggests this threshold is being met comfortably.

 

Danny Scott, the CEO of the U.K. exchange CoinCorner, pointed out that Grayscale were buying $251 million of Bitcoin on average in each week of Q4 2020. This rose to $700 million on a single day last week — and on Jan. 18, a further $590 million was purchased.

 

“Pay attention,” he wrote.

 

Whereas Bitcoin is up just 2% over the past 24 hours, there’s fireworks for Ether. The world’s second-largest cryptocurrency has ballooned by 13% in the same period. At the time of writing on Tuesday morning, it was just $50 away from breaking it’s all-time high of $1,432.88.

 

Subscribe To Our Newsletter! 

Sign up to the CoinMarketCap newsletter for the latest headlines — delivered to your inbox every day.

Author(s)

Decentralized Dog

I'm just your average dog... Only decentralized; also... I'm not your average dog.

Terms in Article

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!

Email submitted!
Oops! Something went wrong while submitting the form.

Related Articles