Bitcoin, after roaring until December and the new year, has suddenly stalled.
The price of bitcoin topped $ 42,000 per bitcoin earlier this month, double the 2017 high, but has struggled to keep up its momentum, dropping to $ 36,000 (even when smaller cryptocurrencies make a profit massive).
Now, as bitcoin trades sideways, analysts at Wall Street giant JPMorgan
JPM
The price of bitcoin has been trading sideways over the last week or so after rising recently … [+]
NurPhoto via Getty Images
Unless Bitcoin is able to “come out” above $ 40,000 soon, investors following trends could start charging, analysts at JPMorgan wrote in a note first released by Bloomberg.
Bitcoin investors who want to profit from the huge rise in the price of bitcoin “could spread last week’s correction” and “momentum signals will naturally decline from now until the end of March,” he warned. team of analysts.
The price of bitcoin has risen nearly 300% since October, rising as institutional investors warm up to the giants of cryptocurrency and payments, such as PayPal.
PYPL
Many institutional investors seeking bitcoin exposure have stacked up on the grayscale Bitcoin Trust over the past year. In the last quarter of 2020, Grayscale raised $ 3.3 billion among its cryptocurrency investment vehicles, a record for the digital asset manager. Its popular Grayscale Trust Bitcoin Trust raised an average of $ 217 million each week in the last three months of the year.
JPMorgan warned that this pace will have to be maintained and even accelerated for the price of bitcoin to fall above $ 40,000.
“According to JPMorgan strategists, the flow to the Bitcoin Trust grayscale should keep pace at $ 100 million daily for the next few days and weeks.”
But that perhaps conservative estimate of demand, with Michael Sonnenshein, the newly appointed grayscale chief executive, revealed over the weekend that the company raised more than $ 700 million on Friday alone, piulant “The momentum in the fourth quarter seems to be picking up speed in the new year.”
The massive price hike from 2020 to 2020, which has pushed bitcoin well above the highs of $ 20,000 in 2017, has had … [+]
Coinbase
Elsewhere, other observers of the bitcoin and cryptocurrency market, still dizzy from the huge December Bitcoin rally, remain broadly optimistic.
“Bitcoin did not break the $ 40,000 threshold again, staying within a corrective scenario,” Alex Kuptsikevich, a senior financial analyst at FxPro, said in comments sent via email.
“However, the level of attendance at around $ 35,000 has not been broken and crypto market participants are not panicking. In early 2021, it will focus on renewing big capital investment as well. as in the volumes of PayPal and other large companies that have announced their interest in the cryptocurrency market. “