It is without a doubt that pioneer cryptocurrency, Bitcoin is regarded as the best asset in the crypto market. This one attribute has put Bitcoin in the driving seat since its launch, driving the price of the digital asset up in the process. Recently, Bitcoin just smashed its recent all-time high record with much fanfare around the entire crypto market.
As if that was not enough, the digital asset went on to create another all-time high record around the $24,000 price region. In the wake of its bullish momentum in the last few days, analysts and experts have begun their respective analysis into events going forward. One of them is the prediction of analysts at JP Morgan Chase, which says that the inflow of cash into crypto funds will determine the direction that Bitcoin will trade in the next couple of days.
Grayscale Bitcoin fund now over $13 billion
According to the analysts, the time it takes funds to get into crypto funds across the globe will determine if Bitcoin will undergo a price correction or a bullish run. This means that if the rate at which funds take to get into crypto funds is slow, Bitcoin will go through a bullish run or vice versa.
Presently, Grayscale boasts of $13.2 billion in its Bitcoin trust; a figure that was barely around $2 billion as of December 2019. This increase is attributed to the massive increase in price that the leading digital asset has witnessed from that period up till this present moment.
Also read:This means that inflows into the Bitcoin fund are pegged at $1 million per month according to statistics. The report was prepared and submitted by JP Morgan Chase analysts led by Nikolas Panigirtzoglu on Friday. The analysts note that even though they will not generally say Bitcoin has entered the overbought zone, they are well aware that the flows going into the trust is enough to ensure that the present position is not left and it is enough to arrest any panic that it might be causing investors and traders.
Bitcoin is presently trading under $24,000
The analysts also noted that if the flow of funds into the Bitcoin fund eventually slows down, then we will witness a price correction that was last seen in 2019. Presently, Bitcoin is trading around the $23,000 price region after its price touched an all-time high figure of $24,291 on Sunday. Even though Bitcoin has slowed down its bullishness a little, crypto enthusiasts are still arguing that investors in the financial market are now looking to invest in the digital asset.
This is coming in the wake of the recent decline in the United States dollars, and the predicted inflation billed to happen across the country. Other people have pointed out that using the funds as a narrative for the increase in the price of Bitcoin and other digital assets is something that is being blown out of proportion. Even though Bitcoin has always witnessed volatility around this period, the backing of institutional investors this time is a deciding factor that has worked well for the digital asset.
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