According to JPMorgan Chase, the world’s largest digital-asset manager may hold the key to the short-term price outlook for Graskeley Investment Bitcoin (BTC).
As Bloomberg reports, Nicholas Panigirtjoglu-led strategists believe that bitcoin may lose its luster in the short term unless it can “break out” above $ 40,000. The flagship cryptocurrency broke that major level on two occasions this month, once hitting new all-time highs near $ 42,000 and another last week.
The strategists determined that the Grayscale Bitcoin Trust, which currently has $ 23 billion in assets under management, would play a key role in whether or not BTC would return to that level.
“Flows to the Grayscale Bitcoin Trust will need to maintain their US $ 100 million per day momentum for such breakouts in the coming days and weeks.”
Analysts said that if BTC fails to repurchase $ 40,000, trend-following traders could publicize the previous week’s correction. This means that the path of least resistance can be reduced.
Since breaching $ 20,000 in December, the price of bitcoin has doubled in just three weeks. The digital currency has been limited in recent weeks as traders look for the next major catalyst.
Meanwhile, Grayscale is significantly impacting the cryptocurrency market. The average weekly flow in Grayscale’s digital-asset products reached $ 250.7 million in the fourth quarter, a new all-time high mark. The Bitcoin Trust produced an average of $ 217.1 million in weekly flows.
As reported by Cointegraph last week, bitcoin prices rose sharply after Grayscale reopened its services to new investors on 13 January.