The last week has been bizarre for the crypto market, especially the flagship cryptocurrency. The price of Bitcoin noticeably fluctuated, briefly going below $30,000.
It is now trading at $33,488 (at the time of writing). However, according to analysts at JP Morgan, the price of Bitcoin could crash to $25,000, especially after the upcoming unlocking of GBTC shares.
BTC has been seen to recover thousands of dollars after its price crash, but the question is if a bearish momentum could be just around the corner?
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How Can GBTC Shares Impact Bitcoin?
JP Morgan is one of the top multinational investment banks and the analysts led by Nikolaos Panigirtzoglou have been analyzing the trajectory of Bitcoin. JP Morgan’s analysts previously predicting a surge in BTC’s price. However, they have now predicted a rather tragic decline that could take the price of Bitcoin to as low as $25,000.
The analysis by JP Morgan’s analysts has not been baseless as Grayscale plays an important role in the crypto market. Grayscale is the largest cryptocurrency asset manager and according to the analysts, the price of Bitcoin could fall after the upcoming unlocking of GBTC shares.
At the beginning of the year, JP Morgan’s analysts predicted a steep correction in BTC’s price, which was witnessed in May. This is why many crypto enthusiasts are at the edge of their seats at the scenario presented by the analysts.
JP Morgan’s analysts wrote:
“Despite this week’s correction, we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally. Despite some improvement, our signals remain overall bearish.”
However, despite the worrisome prediction given by the analysts, they are not entirely hopeless regarding Bitcoin’s price surge in the future.
The analysts noted:
“It would still take price declines to the $25,000 level before longer-term momentum would signal capitulation.”
Why BTC Investors and Traders Should Not Panic?
The possibility of Bitcoin dropping as low as $25,000 is a troublesome thought. However, before investors and traders start to panic, let’s take a look at the recent BTC investments made by popular companies and individuals.
- Square and Tesla are the top two companies with the most BTC holdings.
- ARK Invest now stands at number three for holding most Bitcoin.
- MicroStrategy now owns 105,000 BTC.
- The third-richest man in Mexico has also invested in BTC.
These are only some of the highlights that can lead to the conclusion that such big companies would not have invested in the primary digital asset if it had no value.
Therefore, despite the ups and downs in BTC’s price, it is a cryptocurrency with immense importance and value.
This is why numerous people from around the world have invested in it and even trade it. If you are also a crypto trader, click on ByBit and start margin trading with a free bonus today.
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