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Home Latest News Bitcoin The key to Bitcoin hitting $40K is Grayscale, says JPMorgan

The key to Bitcoin hitting $40K is Grayscale, says JPMorgan

According to JPMorgan strategists, the BTC price is at a crucial inflection point.

According to JPMorgan Chase, Grayscale Investments, the world’s largest digital-asset manager, could hold the key to Bitcoin’s short-term market outlook.

As Bloomberg notes, strategists led by Nikolas Panigirtzoglou claim that unless it can “break out” over $40,000, Bitcoin will lose its luster in the short term. On two occasions this month, the flagship cryptocurrency breached the key amount, once in the lead-up to fresh all-time highs near $42,000 and the other just last week.

The strategists have determined that the Grayscale Bitcoin Trust, which currently has assets under management of $23 billion, will play a key role in whether or not BTC returns to that level. They wrote: “The flow into the Grayscale Bitcoin Trust would likely need to sustain its US$100 million per day pace over the coming days and weeks for such a breakout to occur.”

According to cointelegraph.com, if BTC fails to re-take $40,000, the analysts said that trend-following traders “could propagate the past week’s correction,” That implies that the path of least resistance would have been lower.

The Bitcoin price has more than doubled in just three weeks after breaking $20,000 in December. As traders look for the next big trigger, the digital currency has been rangebound in recent weeks.

Grayscale continues to have considerable influence on the demand for cryptocurrencies in the meantime. In the fourth quarter, total weekly inflows into Grayscale’s digital-asset goods hit $250.7 million, marking a new all-time record. On average, the Bitcoin Trust has generated $217.1 million in weekly inflows.

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