To get above $ 40,000, bitcoin would need another big boost from institutional investors, according to JPMorgan strategist Chase & Co.
Negative scenario for Bitcoin in the short term
Cash inflows into Grayscale's $ 20 billion dollar fund appear to have cooled according to the moving averages of the past four weeks with a 22% drop. This would have contributed to the fall of BTC.
"At current prices, Bitcoin's momentum signal will continue to deteriorate mechanically from here until the end of January or so according to our framework," said strategist Nikolaos Panigirtzoglou. Adding that "the balance of short-term risks is still skewed to the negative side".
For that reason, Panigirtzoglou does not see bitcoin at $ 40,000 in the short term.
BTC in the medium and long term:
However, when analyzing the medium and long term scenario, the figure changes to crypto.
“… The prospects for bitcoin flow for the medium and long term look positive, as we anticipate the contrasting institutional flow picture in the previous two months with entries into the Grayscale Bitcoin Trust (+ $ 2 billion since October 1) and ETF outflows from Gold (-US $ 7 billion since October 1) would become a structural trend. ”
He drew attention to a possible more institutional investors, comparing again with the gold market:
“The adoption of bitcoin by institutional investors has only just begun, while for gold its adoption by institutional investors is very advanced. Most institutional investors have no exposure to bitcoin and for those who have some exposure, mainly HNW / family offices, the exposure is anecdotally small. ”
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