Bitcoin is still struggling to break above $35,000, and in the latest move, the digital asset has tracked back to the $32,000 level where it has been enjoying strong support.
JPMorgan strategists have predicted that Bitcoin will fail to hold $30,000 and slip as far as $25,000 in the coming month accelerated by Grayscale unlocking a substantial amount of GBTC shares.
Since dropping below $40,000 Bitcoin has struggled to get back above this level. In recent days, the digital asset has further slipped below $35,000 fueled by FUD over China’s cryptocurrency crackdown. Although the digital asset has shown strong support at the $30,000 position, JPMorgan strategists are warning that it could further slip to the mid $20K levels.
Since topping at nearly $65,000, bitcoin has shed off half its value earlier in the week testing the $30,000 support. The rebound from these levels was evidence that there is strong support and high demand at these levels.
Led by Nikolaos Panigirtzoglou, the JPMorgan team has warned investors that Bitcoin will continue to struggle pinned down by GBTC shares set to be unlocked in the coming weeks. Sales of the shares, combined with the recent retail sell-off near $40K highs means the token will continue to struggle to break out. The analysts noted;
Despite this week’s correction, we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally. Despite some improvement, our signals remain overall bearish.
Grayscale recently announced that one day in July, investors will get access to 16,000 BTCs in the trusts. The event is likely to spur a lot of volatility. JPMorgan believes this will increase supply at a period with little demand further dragging prices lower.
JPMorgan: GBTC could trigger volatility
Grayscale has in the last two years driven institutional Bitcoin purchases. By developing tools to store and manage cryptocurrencies the firm has encouraged institutional investors to invest and indirectly be involved in the market. These holdings are periodically locked, further guaranteeing institutions to hold digital assets in a mid to long-term periods. The upcoming 16,000 BTC unlocking is a substantial amount coming at an untimely period for the digital asset. As such it could trigger a costly panic sale.
Some analysts contradict the investment bank’s view predicting that the $30K position is the bottom. With little positive development around the digital asset, these pundits expect it to trade within the $30K and $40K range.
The JPMorgan analysts are however not expecting a total capitulation unless prices dip under $25K. “It would still take price declines to the $25,000 level before longer-term momentum would signal capitulation,” added the note.
Bitcoin price update
Bitcoin has in the last 24 hours lost roughly 2 percent and is trading just under $34,000. The digital asset has lost nearly 15 percent in the last 7 days with its market cap just above $600 million according to our data. While Bitcoin is struggling, a majority of top altcoins are recording a positive performance with the likes of DOGE, Ethereum Classic ETC and Cardano ADA gaining more than 5 percent. Others like Tron TRX have earned nearly 20 percent in the last 24 hours.
Der Beitrag JPMorgan strategists expects Bitcoin to reach $25,000 following Grayscale GBTC shares unlocking erschien zuerst auf Crypto News Flash.