By Shelly Melancon (Switzerland)
JPMorgan analysts have argued that the price of Bitcoin could drop to a low of $25,000 when Grayscale Bitcoin Trust (GBTC) is unlocked next month. The top crypto asset had dumped to a low of $28,000 after trading at a little above $40,000 as of last week. In a report by JPMorgan, it said the asset could experience a downturn following selling pressures that may result from the unlocking.
Experts from the US multinational bank have highlighted the relevant role Grayscale would play in the price of Bitcoin. In April, the bank had predicted that the momentum was low for Bitcoin to reclaim its former ATH of $60,000 at the time. Analysts at the bank said there was some sort of similarity in the price correction, which they said was different, to past ones. Then, the price traded at $55k. They further asserted that the price of the top crypto asset had to cross the $60k ATH before beginning a new round of bull run. However, early May saw the price of the top cryptocurrency touch an overall ATH of $64,493.
Although Bill Miller, US investor and fund manager who invested $300 million in Grayscale Bitcoin Trust had faulted JPMorgan’s report saying the market downturn at the time was just a volatile setback which is a little cost to pay for the future performance of the crypto asset. The US investor said Bitcoin is just a thing of demand and supply, albeit the demand is higher than the supply. He further said that Bitcoin is Gold 2.0 and may eventually surpass Gold’s market capitalization.
Also read:JPMorgan Issues Report on BTC in April
When the first Bitcoin report by JPMorgan’s analysts was released in April, investments into GBTC had reduced then. However, the latest report by the US Bank is in line with the proposed opening of the GBTC which could trigger a selling spree and see the price of BTC spiral downwards. Tokenhell had earlier reported that the opening of the Bitcoin Trust would take place on July 19 and about 16,000BTC ($627 million) would be released to Grayscale’s clients.
Grayscale is one of the biggest institutional investors in cryptocurrencies as it holds over $24 billion worth of crypto under management. The Bitcoin Trust is kept locked for six months and opened at intervals. The proposed release would trigger sell offs as investors would want to cash out on their investment following the price increase of BTC since then.
Is $25k Really in View?
Reports by other analysts indicate that BTC’s price might have reached its bottom already as the asset traded at $28,000 this week before moving over to $33k. Despite this, the report by JPMorgan still spells further doom for BTC. The $28k price mark had come on the heels of China’s clampdown on Bitcoin miners in the Sichuan Province. JPMorgan is generally bearish on BTC which it said would touch the $25k price mark before a steady ride upwards.
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