JPMorgan: ‚Institutional parties prevent Bitcoin correction‘

JPMorgan remains positive about the future of bitcoin. According to analysts of the US bank, the bull run of bitcoin could be at the expense of the price of gold. In an interview with Bloomberg, analyst Nikolaos Panigirtzoglou talks about the role of institutional parties in the future of bitcoin.

Institutional parties must prevent correction
JPMorgan reports that the assets of Grayscale Bitcoin Trust Crypto Superstar have increased from USD 2 billion at the beginning of December last year to USD 13.1 billion now. This is because Grayscale continuously invests in bitcoin, but also because the bitcoin rate has tripled by 2020.

According to analyst Nikolaos Panigirtzoglou, approximately USD 1 billion flows into Grayscale’s fund every month.

In recent weeks, the bitcoin price has risen sharply, and analysts see that bitcoin is overbought. This means that a correction will soon be possible. But will there also be a correction? That depends on institutional parties such as Grayscale:

„The inflow of investments in bitcoin is currently too large to create a negative momentum for day traders“. However, JP Morgan does warn: should institutional parties, for whatever reason, invest less in bitcoin, a correction as in the second half of 2019 is possible.

For the time being, however, it does not appear that institutional parties are keeping a tight hand on the cut. Today, for example, listed company MicroStrategy still invested USD 650 billion in bitcoin.

JPMorgan positive about bitcoin
JPMorgan is one of the few Wall Street banks predicting a shift in allocations from gold to bitcoin. Earlier this month, Panigirtzoglou foresaw the rise in bitcoin at the expense of the growth of the gold rate:

„The adoption of bitcoin by institutional parties has only just begun, while the adoption of gold by the same institutional investors is already more advanced“.

In other words, bitcoin has even more room to grow.