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December 21, 2020 @ 14:36 +03:00
Such a drop in flows into the largest bitcoin (BTC, -3.75%) fund would increase the likelihood of a price correction similar to the one seen in the second half of 2019, according to a note from the bank’s quantitative strategists led by Nikolaos Panigirtzoglou, as reported by Bloomberg Monday.
The digital asset manager’s bitcoin inflows “are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics,” the strategists said.
They stopped short of saying bitcoin is overbought after the cryptocurrency has soared to consecutive record highs in recent weeks.
The most recent data tweeted by Grayscale Investments showed the firm reached $15.5 billion in cryptocurrency assets under management on Dec. 18 – up $2 billion in less than a month. Its Bitcoin Trust is now worth over $13 billion of that total.
Bitcoin hit a new record price of $24,273 on Sunday. At the time of publication, prices were lower around $23,450.
A Slowing of Grayscale Bitcoin Fund Inflows Could Prompt Price Correction: JPMorgan, CoinDesk, Dec 21