$BTC $ETH #JPMorgan Analysis Points to Potential Downward Pressure on Bitcoin Price
JPMorgan's recent analysis suggests that if investors continue selling shares of the Grayscale Bitcoin Trust (GBTC), Bitcoin's price might experience additional downward pressure in the coming weeks, as reported by The Block.
The Grayscale Bitcoin Trust recently converted to a spot Bitcoin ETF, witnessing substantial outflows exceeding $1.5 billion. JPMorgan's previous estimation indicated outflows of up to $3 billion, primarily driven by speculative investors selling shares for profit.
In a note on Thursday, JPMorgan analyst Nikolaos Panigirtzoglou commented, "If the previous estimate of $3 billion proves correct and $1.5 billion has already exited, then there could be an additional $1.5 billion exiting the Bitcoin space through GBTC profit-taking, giving further support to Bitcoin in the coming weeks. Prices are under pressure."
Analysts suggest that GBTC investors, anticipating the ETF switch, have been buying shares at a discount to net asset value over the past year. The recommendation is to "reap full profits by completely exiting your Bitcoin position after an ETF switch, rather than switching to a cheaper spot Bitcoin ETF." This analysis underscores the potential impact of investor behavior on Bitcoin's near-term trajectory. #BTC #ETHPrice #ETFs