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JPMurgan: Companies’ demand for bitcoin is not high enough to push prices above $ 40,000


JPMurgan Bank claims that bitcoin has peaked at the same time as Grayscale and is currently unable to grow further.

To Report JPMorgan, the investment banking giant, has concluded that a significant reduction in inflows into GarySkill’s Bitcoin Mutual Fund is likely to prevent the digital currency king from reaching $ 40,000 again. Bloomberg wrote in a report:

At present, the incentive of Bitcoin Gray Fund executives to invest more in this digital currency is not strong enough to break the $ 40,000 resistance barrier.

The speed of investment of Gary Skill, the market’s largest digital asset manager, on Bitcoin has always been crucial to the level of interest of important corporate investors.

About a month ago, Jeepman strategists warned that reducing the inflow could lead to drastic improvements. At the time, bitcoin was trading below $ 24,000.

After the staggering growth of Bitcoin to a record $ 42,000 on January 8, the market failed to gain enough momentum to stay strong and, therefore, underwent a series of price corrections. At the time of writing, the market’s top digital currency is trading at $ 33,207.

In its report, JPMurgan notes that the flow of Scale inflows has fallen even more than the bitcoin trend over the past week; The fund’s inflow fell by 22 percent and the price of bitcoin fell by 17 percent.

Institutional Demand Not Strong Enough to Push Bitcoin Above $ 40,000: JPMorgan
Overtaking the rate of reduction of Scale investment over the rate of decrease of Bitcoin price

It goes without saying that the doors of Gary Skill Company were closed to new investors from December 21, 2020 to January 12, 2021 (January 1 to 23).

According to the company’s updated statistics on January 22 (February 3), the current assets of Bitcoin Gray Investment Fund are slightly more than $ 20 billion.

Institutional Demand Not Strong Enough to Push Bitcoin Above $ 40,000: JPMorgan
Bitcoin Gray Investment Fund Assets as of January 22, 2021

Michael Sonnenshein, the new CEO of Gary Skill, tweeted early this morning on his personal page about an important announcement that is to be published by the company. However, it is not clear whether this “good” news is about Bitcoin or the company’s new mutual funds that have targeted the coin market.

Institutional Demand Not Strong Enough to Push Bitcoin Above $ 40,000: JPMorgan
Michael Sunshine Tweets

Apart from the declining organizational demand for bitcoin, another obstacle to bitcoin growth is the significant leap of Ethereum, which has been accompanied by double-digit percentages in decentralized finance.

Earlier today, Ethereum, the market’s largest AltQueen, set another record at $ 1,475. At present, bitcoin dominance has dropped to 62.8%, reaching its lowest level since late November (mid-December).

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