According to JPMorgan analysts, the unlocking of GBTC shares might enhance selling pressure and send BTC’s price lower to £18,000.
Despite the fact that bitcoin has recovered from its mid-week meltdown, JPMorgan still sees it as having a negative future. They mentioned the forthcoming unlocking of GBTC shares in their most recent performance memo, which might drive the cryptocurrency down to £18,000.
The experts from the big global investment firm, led by Nikolaos Panigirtzoglou, have taken a contentious approach to the primary cryptocurrency. They’ve progressed from forecasting a six-figure price tag to laying out a variety of doomsday scenarios.
The function of Grayscale, the largest bitcoin asset manager, is one area where they have remained consistent. They warned earlier this year that BTC’s price might see a correction due to a drop in inflows to Grayscale.
Another pessimistic possibility involving the largest BTC-tracking fund was discussed in the latest document, according to Bloomberg. They talked about unlocking Grayscale Bitcoin Trust shares this time.
Institutional investors using Grayscale’s services will have access to 16,000 bitcoins in a single day in July this year. Decently significant amounts will be released for the rest of the month.
Given the value growth of BTC throughout this six-month locking period, it’s safe to expect that at least some of the investors will elect to cash out. According to JPMorgan, this might increase market volatility and put sell pressure on the market.
Stack Funds previously discussed a similar scenario, although in their report, they claimed that bitcoin had already touched its bottom.
The world’s best-known cryptocurrency bitcoin fell below £21,000 just a few days ago, its lowest price in half a year. It has subsequently recovered some ground and is now trading above £23,000, but JPMorgan analysts believe further negative price moves are on the way.