JPMorgan analysts revealed that Bitcoin (BTC) could still experience an adverse impact on its growth. The analysts further commented about Grayscale’s GBTC sales and how this could be a potential headwind for Bitcoin.
The JPMorgan strategists remain reluctant in altering the stance about the potential negative outlook regarding Bitcoin as well as the crypto market overall, despite the fact that BTC and other altcoins had managed to increase slightly this week.
Whatever the case may be, it looks as if JPMorgan is set on blaming Grayscale as far as the recent BTC correction may be concerned.
Sell-off by Grayscale may have been the deciding factor
The analysts claim that the GBTC sale via Grayscale’s Bitcoin Trust will more than likely result in the aforementioned headwind against the price growth of Bitcoin. The group, led by Nikolaos Panigirtzoglou, truly does think that it was the sell-off that had greatly contributed towards the recent decrease in price, although others strongly believe that it was the shutting off of the BTC mining operations in China.
Furthermore, as per the information and statistics provided by Bybt’s analytics website, it had been observed that GBTC had been consistently trading at a 12.7% discount. Also, the inflows for the Grayscale Bitcoin Trust have stayed negative.
Ultimately, JPMorgan remains confident in its analysis that the sell-off heavily contributed to BTC’s negative outlook. Right now, BTC is trading at $33,330.
BTC’s price still fluctuating
The recent market correction had caused numerous cryptocurrencies to experience significant losses, which many are still continuing to have even as we speak. Only a few of the major tokens, such as ADA and TRX, have managed to remain in the green, whereas most are in the red, including both Bitcoin and Ethereum (ETH).
A couple of days ago, on the 22nd of June 2021, BTC had dropped to beneath $29,000, which had led numerous investors to fear that the flagship crypto would fall to its last support level. Thankfully though, BTC managed to recover and is trading at the abovementioned price of over $33,000 at this moment. There has been widespread speculation that we might be entering a bear market, and although the situation has slightly improved, nothing can be said for certain as a lot of volatility is expected within the coming weeks, with some experts claiming that BTC will dip as far as $25,000.