An analyst at financial conglomerate JPMorgan Chase believes that institutional traders played a big role in the recent decline in the bitcoin exchange rate, and may push BTC to a new fall.
JPMorgan chief strategist Nikolaos Panigirtzoglou said that it was the mass closure of” inertia traders ” of transactions to buy bitcoin that led to the decline in the BTC rate to $16,400. By “inertia traders,” the analyst means institutional traders and stock market consultants.
Panigirtsoglu noted that the number of profitable positions for such traders was significantly reduced, however, if the bitcoin exchange rate does not show a rapid recovery, then the remaining part of the transactions may be closed, which will lead to a new drop in the price of the first cryptocurrency.
One of the key indicators of the state of the market, according to the chief strategist of JPMorgan, is now the inflow of investments in the Grayscale Bitcoin Trust (GBTC). If the inflow of investment decreases, then you should be prepared for the fall in the rate of the first cryptocurrency.
“If GBTC does not receive additional injections in the coming weeks, it will call into question the interest of institutional investors in bitcoin, especially as a long – term investment,” Panigirtsoglu concluded.
Recall that Guggenheim Partners recently filed an application with the US Securities and Exchange Commission (SEC) to allocate more than $500 million from the Macro Opportunities fund to invest in the Grayscale Bitcoin Trust.
Earlier, the investor and founder of Mobius Capital Partners, Mark Mobius, compared the first cryptocurrency to casino games.