Analysts at JPMorgan suggest that the legendary digital coin has been overbought. Advise Bitcoin investors to be careful as the correction will be required for Bitcoin. Say that odds for correction will only increase once the Bitcoin Fund with Grayscale slows down.
A public note had been issued recently by JPMorgan compiled by its veteran analysts. The note was informed of being comprised of predictions regarding Bitcoin.
It was suggested in this note that the current state of Bitcoin was that it had been overbought. It was further pointed out that the future of Bitcoin is directly linked with the Bitcoin Fund maintained by Grayscale Investments.
It was revealed in the note that an immediate correction was required to be made in Bitcoin. If this correction had not been put in place then the possibility of odds will only increase sooner or later. They also suggested that whenever Bitcoin’s inflows had been slowed down at Grayscale’s Fund, then correction would take a serious toll.
JPMorgan’s analysts argued that during the current year, particularly during the crisis, Bitcoin was overbought by individuals and institutions. They said that the existence of Grayscale’s Bitcoin fund had a crucial role to play in the future of Bitcoin. According to them, Bitcoin’s Bull-Run is nevertheless pegged with the inflow of digital assets coming into the fund. Whenever this inflow will dry up, resultantly, the value of Bitcoin will go down rapidly, they suggested.
Grayscale Investments is the world’s largest digital currency asset management company which manages approximately 16 Billion worth of assets. The largest fund managed and controlled by Grayscale Investment is none other than the Bitcoin Fund. It was reported that the assets lying in Grayscale’s Bitcoin Fund had exceeded the value of US$ 13 Billion. This is the highest Bitcoin Fund being managed by a company in the whole world.
The inflows of digital assets coming into the fund this year were the highest ever recorded in Grayscale’s history since its inception. It is said that on monthly basis around US$ 1 Billion of Bitcoins had been brought into the Bitcoin Fund.
JPMorgan’s analysts are concerned these days because most of the Gold investors too had shifted their investments into Bitcoin.