Further Declines in Bitcoin Price Possible Though Grayscale is Crucial, Notes JPM Analyst

Although Bitcoin has recovered from its vigorous price losses during the Thanksgiving massacre, analysts from JPMorgan Chase & Co believe that further declines may still occur.
The strategists pointed out that Grayscale, through its Bitcoin Trust, will play a significant role in future BTC price developments.Is Bitcoin To Head Further South?
The primary cryptocurrency reached a new yearly high of $19,500 last week; thus, it came less than 3% away from the 2017 all-time high of $20,000.As the community began speculating on how long it will take to surpass that level, the trend reversed viciously.
Bitcoin headed south and lost over $3,000 of value in hours.Nevertheless, the cryptocurrency has recovered most of its losses and trades north of $18,000.
A JPM analysis, led by Nikolaos Panigirtzoglou, recently said that the Thanksgiving price drops had cleared the “previous froth in momentum traders’ positioning.” However, the strategists hinted that Bitcoin could still go lower.
“Momentum traders such as commodity trading advisors and other quantitative funds likely played a big role in the slide by unwinding long Bitcoin futures positions.

Momentum traders have room to further propagate” the Bitcoin decline, noted the analysts cited by Bloomberg.
Apart from broaching “momentum traders,” the strategists also discussed various other reasons behind the price developments.Those included the rumors of new regulations proposed by the Trump administration and profit-taking.Grayscale Is Key
The JPM strategists also highlighted the significant role of Grayscale and its Grayscale Bitcoin Trust on the market.The cryptocurrency manager is the most preferred company for institutional investors to receive exposure to Bitcoin (and other digital assets) without worrying about storing the funds.
This has been exemplified through 2020 as Grayscale has reported back-to-back recording-breaking quarterly results.

The assets under management (AUM) have exploded in the past 12 months to over $10 billion.Somewhat expectedly, the Grayscale Bitcoin Trust has the most substantial share.
The analysts asserted that if there’s a decline in the interest towards GBTC, this could damage the narrative that Bitcoin has become a favorite among institutional investors:
“A failure by the Grayscale Bitcoin Trust to receive additional inflows over the coming weeks would also cast doubt to the idea that institutional investors such as family offices have embarked on a trend of embracing Bitcoin as digital gold replacing traditional gold as a long-term investment.” Share this: JP Morgan Chase Raising Mortgage Borrowing Standards Following The Economic Uncertainty It appears that banks are quickly adapting their policies to the current darkening economic outlook.In the US, the country’s fourth-largest lender – JP Morgan, is raising its mortgage borrowing standards as a response to the situation.JP Morgan Raising Mortgage Borrowing Standards Borrowing money against a mortgage will be harder for US citizens starting… Friday Crypto Market Watch: Bitcoin Says Goodbye To $9K, Plunging $800 In 48 Hours After a few days of sideways trading, Bitcoin made a move.

The cryptocurrency lost around $800 in the last 48 hours.At the time of this writing, the cryptocurrency is trading at about $8,800.Two weeks ago, the Chinese President announced that the country should put more effort into embracing blockchain-based technology, and Bitcoin’s price… Coinbase Announces Remote-First Culture When Quarantine Restrictions Are Over After the restrictions of quarantine are over, the leading U.S.based crypto exchange, Coinbase, will embrace a ‘remote-first’ culture.

The remote-first shift has been accelerated with the duty to comply with the six feet apart social distancing measures currently in place due to Coronavirus.Implications for Coinbase Employees Coinbase estimates that between 20 – 60%… Huobi Moves Full Speed Into Turkey by Hosting the Eurasia Blockchain Summit [SINGAPORE, Sept.12, 2019, Press Release] Huobi Group, alongside Kemer Partners, announces that it will be hosting the first annual Eurasia Blockchain Summit, set to be the largest blockchain and cryptocurrency gathering in Turkey, a region many speculate is currently leading the rate of cryptocurrency adoption in Europe.In hosting the summit, Huobi will bring together leading blockchain companies,… Brave Browser To Add BNB and BUSD As Part Of Its Reward System In The Future, Says CZ Binance CEO Changpeng Zhao (CZ) and Brave Software co-founder and CEO Brendan Eich said in a live stream earlier today that the partnership between the two will continue with new developments.Both companies plan to introduce Binance Coin (BNB) and Binance USD (BUSD) as new additions to the Brave Browser Rewards system.

Brave Browser To… Litecoin Price Analysis: Litecoin Struggling Upon Reaching $70, Will Hold The Significant Support? Litecoin has seen a further 5% price decrease over the past 24 hours, which has brought the price of the cryptocurrency down to $70.This latest price drop is mostly a result of Bitcoin dropping back beneath the $10,000 region as things start to look bleak for the overall cryptocurrency market.Litecoin remains the fifth-largest… Ethereum Price Analysis: ETH Testing Important Resistance At $200 But Remains Weak Against Bitcoin Ethereum continued to trade in a range between $190 and $200.Against Bitcoin, the price may dip lower if the 0.021 BTC support fails to provide a rebound.The trend remains in a downward range on the 4-hours chart.ETH/USD: Ethereum Pushes Toward $200 Key Resistance Levels: $200, $215, $226 Key Support Levels: $175, $166,… Federal Judge Pauses $30M SEC Case Against Alleged Crypto Scam An SEC suit against allegedly fraudulent ICO was recently put on pause by US federal judge.Prosecutors have interfered because a parallel criminal investigation against the alleged scammers was also on the go.

The Court Put On Hold A $30 Million Crypto Investment Scam A New Jersey Federal Judge has ordered the pause of SEC’s… Ukraine Might Use Excess Electricity From Nuclear Power Generation For Cryptocurrency Mining Merely days ahead of the Bitcoin halving, Ukraine and Iran are taking steps into expanding mining services within their borders.Ukraine plans to utilize excess nuclear power, while the Asian country has granted a license to a Turkish company to operate up to 6,000 mining rigs in Semnan.Nuclear Power Utilized For Crypto Mining? The… .

admin

Crypto 24 / 7 sources news from across the internet about various crypto currencies and reports the views to it user base. You can use this to make an informed decision when investing in your coin of preference

Leave a Reply