#JPMorgan, #Bitcoin, #CryptoMarket, #Grayscale, #BitcoinTrust, #GBTC, #SECAproval, #BitcoinSelloff
Global investment bank JPMorgan has voiced its opinion on the recent developments in the cryptocurrency market, following a bitcoin selloff that brought the price of BTC down from over $47K to below $39K in just a week. The selloff was accompanied by significant outflows from Grayscale’s bitcoin trust (GBTC), which transitioned into a spot bitcoin ETF after obtaining approval from the U.S. Securities and Exchange Commission (SEC) on January 10. Since then, GBTC has seen its bitcoin holdings decrease by more than 114,000 BTC, equivalent to $4.77 billion.
JPMorgan strategist Nikolaos Panigirtzoglou expressed his views on these recent events, stating that the majority of the profit-taking from GBTC has likely already taken place given that $4.3 billion has already been withdrawn. He further implied that the downward pressure on bitcoin from this channel should be largely behind us now. Panigirtzoglou had earlier predicted that around $3 billion would exit GBTC, contributing to a downward pressure on the bitcoin price. This outlook corroborates the views of Needham analyst, John Todaro, who noted decreasing GBTC outflows, indicating a potential slowdown in redemptions. Meanwhile, another JPMorgan analyst, Kenneth Worthington, showed skepticism towards the impact of bitcoin ETFs on the market, leading the bank to downgrade Coinbase stock from Neutral to Underweight.
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