Institutional investors may be the only thing pushing up the price of Bitcoin (BTC), a new report from JPMorgan Chase claims.
In comments on December 18 quoted by Bloomberg, strategists led by Nikolaos Panigirtzoglou added to recent predictions about the role of institutions in the future of Bitcoin.
JPMorgan: Bitcoin “overbought”
According to JPMorgan, this month’s large inflows should continue to avoid a price correction.
Such as Cointelegraph reportedTheories associated with recent price hikes include institutional investors buying through over-the-counter transactions that suck up the available supply. This has been called a liquidity crisis, which will only accentuate with time, while this week another analyst claimed that the cycle could fuel the Bitcoin bull indefinitely.
However, for JPMorgan, buyers have to keep up with the pace to avoid the opposite scenario – losses.
As for Grayscale, which now has $ 13.1 billion in crypto assets under management, they reasoned that the massive inflows means they are “too big for momentum traders to unwind a position to allow for ongoing negative price dynamics. to create”.
Despite this, Bitcoin was still “overbought” at its current price level near USD 24,000 as the Relative Strength Index (RSI) moved above 70. A later price dip Monday brought RSI below this threshold.
More pressure on the gold price is moving forward
Previously, Panigirtzoglou et al. suggested that Bitcoin could benefit from a $ 600 billion cash injection through institutional withdrawal after insurance giant MassMutual revealed a $ 100 million allotment.
Build on previous warnings about gold losing its place to Bitcoin, meanwhile, the latest findings a new “trend” identified formed by Grayscale. Exposure to Bitcoin may involve one unit buying grayscale and three units from the SPDR Gold Trust.
“If this thesis is true for the medium to longer term, gold prices would suffer from structural headwinds in the coming years,” she added.
The correlation between gold and Bitcoin has declined since October when Bitcoin rose to new all-time highs. Gold saw a rejection at $ 1,900 on Monday after a modest rebound from lows below $ 1,800.