Bitcoin “Overbought“? JP Morgan Chase Strategists Seem To Think So
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As the biggest cryptocurrency in the world hits a new all-time high of $23,000+, institutional investment is well on the rise! Over the past few months, bitcoin has been on a journey that it likely could continue in the near future. That being said, this is not financial advice and we are not financial advisors. Please do your own research before investing in a digital asset such as bitcoin.
In fact, the new all-time high for bitcoin is actually over $24,000 at the time of writing, but by the time this article goes live, who knows!
Some are putting institutional interest as the key reason for bitcoin spiking so heavily in its value. To that end, the banking conglomerate JP Morgan Chase believes that major crypto fund flows are a big reason as to how the future of bitcoin will look.
In a new report from Bloomberg, strategists at the company indicate that a significant slowdown of inflows through bitcoin could have a significant impact on whether a correction occurs.
“Overbought“ was the term that some of the strategists used in the report in reference to the leading crypto coin. As a result, a substantial slowdown in how the asset is bought is necessary.
“It is hard to avoid describing Bitcoin as “overbought,” the flows into the trust are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics.”
The strategists at the company further went on to highlight Grayscale and their total assets under management which are currently just over $13 billion. In the analysis, $1 billion worth of inflows is seen by the Grayscale Trust on a monthly basis.
It is very curious indeed as to why bitcoin has accelerated so much over the past month in value.
Many people have cashed in on the meteoric rise bitcoin has experienced whereas others have held onto the asset hoping to make even more profit in the future!