JPMorgan Analyst Predicts Bitcoin Price Drop
JPMorgan’s analyst, Nikolaos Panigirtzoglou, expressed his views on the impact of spot bitcoin ETF launches and outflows from Grayscale’s bitcoin fund. Grayscale converted its bitcoin trust into a spot bitcoin ETF following approval from the SEC. Since the launch of spot bitcoin ETFs, the price of BTC has dropped more than 10%. Panigirtzoglou believes this is due to profit-taking after the anticipation of ETF approval. The outflow of $1.5 billion from Grayscale’s GBTC fund, in particular, has been a drag on bitcoin prices. Investors who bought at a discount and expected the ETF conversion are now exiting the bitcoin space entirely. This could put further pressure on bitcoin prices in the coming weeks.
Significant Outflows from Grayscale’s Bitcoin ETF
The conversion of Grayscale’s bitcoin trust into a spot ETF has led to a significant outflow of BTC. Since January 12, over 50,000 BTC, valued at over $2 billion, have been withdrawn from Grayscale’s bitcoin ETF. Additionally, Panigirtzoglou analyzed the inflows into other spot bitcoin ETFs, such as Blackrock’s Ishares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund. These ETFs received around $3 billion in inflows within just four days, mainly from investors shifting from existing bitcoin vehicles or digital wallets held with exchanges to the cheaper spot bitcoin ETFs.
Hot Take: JPMorgan’s Warning on Bitcoin Prices
JPMorgan’s warning of a potential bitcoin sell-off due to outflows from Grayscale’s Bitcoin ETF and the influx of new spot ETFs presents a cautious outlook on bitcoin prices. The recent decline in BTC’s price post-ETF approval indicates a profit-taking trend among investors. The conversion of Grayscale’s bitcoin trust and the subsequent exit from the bitcoin space by some investors could continue to impact bitcoin prices negatively. As more investors take profits on GBTC, there may be additional pressure on bitcoin prices in the coming weeks. The launch of spot bitcoin ETFs has also attracted significant inflows, reflecting a shift from existing bitcoin vehicles and digital wallets to these new offerings.
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