An analyst at investment bank JP Morgan firmly believes that the price of bitcoin is being supported by institutional investors (funds, family offices and various companies). Alerting to a possible violent drop if the buying movement stops.
According to JP strategist Nikolaos Panigirtzoglou, the Grayscale Bitcoin Trust fund achieves a volume of $ 1 billion inflow per month. Cash inflows "are too big to allow any position to gain momentum between traders to create sustained negative price dynamics".
If a reversal were to happen, strong selling pressure could violently bring down the price of crypto, believes the analyst.
Reversal reaching the price of Bitcoin?
Despite the warning, it seems that institutional investors are piling up to grab a slice of the 21 million bitcoin coin pie.
The last to take a stand was Elon Musk, CEO of Tesla and SpaceX, the billionaire raised the possibility of keeping part of Tesla's cash in BTC.
Elon would be the newest member of an extensive list of tycoons and companies that landed on bitcoin in 2020.
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