Thursday , March 4 2021

Shades of gray are the key to Bitcoin reaching $ 40,000, according to JPMorgan

Gray Shades Investments, the world’s largest digital asset manager, may hold the key to Bitcoin’s short-term price forecast (BTC), according to JPMorgan Chase.

As reported by Bloomberg, Strategists led by Nicolas Penigirzoglou believe that Bitcoin could lose its luster in the short term unless it can “break in” $ 40,000. The flagship currency broke the key level twice this month, one in a cycle that led to new highs of all time, around $ 42,000 last week.

The strategists determined that Bitcoin Trust de Grayscale, Which currently has assets under management of $ 23 billion, Will play a crucial role in whether BTC will return to this level or not.

They wrote:

“The flow to Gray’s Bitcoin Trust will likely have to keep pace at $ 100 million a day in the coming days and weeks for such a break to occur.”

If BTC does not return $ 40,000, traders who follow the trend “Can distribute the patch last week”, Analysts said. That is, the path of least resistance can be down.

Since it exceeded $ 20,000 in December, the price of Bitcoin has doubled in just over three weeks. The digital currency has stalled in recent weeks as traders look for the next big catalyst.

Meanwhile, Shades of gray continue to have a major impact on the cryptocurrency market. Average weekly records on Grayscale digital asset products Reached $ 250.7 million in the fourth quarter, Setting a new record at all times. The Bitcoin Trust generated $ 217.1 million in weekly values, on average.

As Cointelgraph reported last week, The price of bitcoin rose sharply after Grayscale reopened its services to new investors on January 13th.

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