JPMorgan issues a warning to block the price of Bitcoin after the sudden sale of Bitcoin

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Bitcoin, after screaming until December and into the new year, suddenly crashed.

The price of bitcoin exceeded $ 42,000 on bitcoin earlier this month, doubling the 2017 high, but struggled to keep pace, falling to about $ 36,000 (even though smaller cryptocurrencies are gaining massively).

Now, as bitcoin trades sideways, analysts at Wall Street giant JPMorgan

JPM
 they warned that there could be an exodus of investors, unless Bitcoin recovers its $ 40,000 high.

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Unless Bitcoin is able to “burst” over $ 40,000 soon, investors following the trends could start cashing in, JPMorgan analysts wrote in a note first reported by Bloomberg.

Bitcoin investors who want to profit from the huge bitcoin price boom “could spread last week’s correction,” and “momentum signals will naturally decline by the end of March,” the analyst team warned.

The price of bitcoin has added a whopping 300% since October, rising as institutional investors warm up to cryptocurrency and payment giants like PayPal

PYPL
 add their support.

Many institutional investors seeking bitcoin exposure have piled up in the Grayscale Bitcoin Trust over the past year. In the last quarter of 2020, Grayscale raised $ 3.3 billion on its cryptocurrency investment vehicles, a record for the digital asset manager. Its popular Bitcoin Grayscale Bitcoin Trust has grown by an average of $ 217 million each week in the last three months of the year.

JPMorgan warned that this pace will have to be maintained and even accelerated for the bitcoin price to return above $ 40,000.

“The flow into the Grayscale Bitcoin Trust should probably maintain a rate of $ 100 million a day in the coming days and weeks for such a breach to take place,” according to JPMorgan strategists.

But this may conservative estimate of demand, Michael Sonnenshein, the newly appointed gray executive, revealed over the weekend that the company raised more than $ 700 million on Friday alone. tweeting “The momentum in Q4 seems to increase in the new year.”

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Elsewhere, other observers of the bitcoin and crypto market, still insane by the huge bitcoin rally in December, remain generally optimistic.

“Bitcoin has failed to break the $ 40,000 threshold again, remaining in a corrective scenario,” Alex Kuptsikevich, FxPro’s chief financial analyst, said in e-mail comments.

“However, the level of support of about $ 35,000 has not been interrupted, and cryptographic market participants are not panicking. In early 2021, the focus will be on renewed capital investment as well as PayPal volumes. and other large companies that have announced their interest in the cryptocurrency market. “

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