JPMorgan strategists said Bitcoin needs to exceed $40,000 to avoid a major price pullback. The strategic team led by Nikolaos Panigirtzoglou said that the king coin could see an outflow of trend-following investors except Bitcoin crosses above $40,000. At the time of writing, Bitcoin is down 0.09% $35,837.14.
According to a Bloomberg report, the strategist noted:
“The flow into the Grayscale Bitcoin Trust would likely need to sustain its $10 million per day pace over the coming days and weeks for such a breakout to occur.”
The price of Bitcoin fell by $12,000 shortly after reaching almost $42,000 at the beginning of 2021. Strategists at JPMorgan added that BTC also plunged after hitting $20,000 in November 2020.
Before now, CryptoPotato revealed that Bitcoin is taking a significant part of the market share from gold as investors show more interest in the digital asset. Citing JPMorgan analysts, the report also said that the price of gold may fall as Bitcoin takes over its market share.
The analysts also said there has been an outflow of funds from gold and inflow into the top crypto asset. Institutional investors continue to secure large quantities of Bitcoin as Grayscale also recently acquired more. The Grayscale Bitcoin Trust purchased more than 5,000 BTC for $189 million.
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