JPMorgan Forecasts Bitcoin to Test $25,000 following Unlocking of Shares by Grayscale GBTC
Since falling below $40,000, Bitcoin has failed to regain its footing. Frustration about China’s cryptocurrency clamp down has pushed the digital asset under $35,000 in recent times.
Even though digital asset has demonstrated solid support near $30,000, JPMorgan analysts have cautioned that it might decline to the mid-$20,000 range. Bitcoin has lost more than 50% after peaking at almost $65,000 a month before, hitting the $30,000 level.
The recovery from these lows has shown that there is growing market and backing at present levels. The JPMorgan team, headed by Nikolaos Panigirtzoglou, has cautioned investors that Bitcoin will find it difficult as GBTC shares are released in the following weeks.
The cryptocurrency will find it more difficult to break out due to share sales and the current retail sell-off at $40K highs.
According to the experts,
“Even after this week’s pullback, we remain pessimistic about Bitcoin and the cryptocurrency markets in general. Notwithstanding modest improvement, our cues are still negative in general.”
Grayscale has stated that investors would have exposure to 16,000 BTCs in the trusts on July 1st. There will almost certainly be a lot of volatility as a result of the event. JPMorgan thinks that by increasing supply at a time when demand is low, prices will fall even more. Grayscale has been driving institutional Bitcoin buying over the past two years.
The company has urged institutional investors to invest and passively participate in the market by creating solutions to store and organize bitcoins. These holdings are frozen on a regular basis, ensuring that institutions may keep digital assets for the longer run.
The imminent releasing of 16,000 BTC is a significant quantity that comes at an inopportune moment for the digital currency. As a result, it may spark an expensive panic selling. Some analysts disagree with the investment bank’s prediction that the position at $30K is the bottom. With almost no fresh positive news surrounding the digital asset, analysts expect it to trade between $30K and $40K.
JPMorgan analysts, on the other hand, do not foresee an end to the sell-off before prices fall below $25,000. “Price falls below the $25,000 level would still be required before long-term impetus hint of capitulation,” the report said. Bitcoin has dropped almost 2% in the previous 24 hours and is now trading at little under $34,000.
The crypto has lost over 15% in the previous seven days, reflecting erosion in the market cap by a little over $600 million. While Bitcoin is under selling pressure, a majority of popular altcoins, such as DOGE and XRP, are performing slightly better.