< img width="1300"height =" 743 "src ="https://cdn.coingape.com/wp-content/uploads/2021/03/15110725/Bitcoin-BTC-Correction.jpg"class ="attachment-full size-full wp-post-image"alt ="bitcoin" style="float: right; margin:0 0 10px 10px; "/ > The Grayscale Bitcoin Trust (GBTC)is heading for the expiry of the six-month lock-up period for its shares by June end. JPMorgan analysts think that this can potentially develop additional downward pressure on the rate of Bitcoin (BTC).
In a note on Wednesday, June 23, JPMorgan strategist Nikolaos Panigirtzoglou writes that the unlocking might potentially set off more selling of GBTC shares by institutional players. The Bitcoin cost is going through heightened volatility just recently. After drawing back over $34,000 levels from Tuesday’s lows, Bitcoin (BTC) is as soon as again under pressure today.
At press time, BTC is trading at a cost of $32,990 with a market cap of $613 billion. JPMorgan continues to hold its bearish outlook for BTC. As priced estimate by Bloomberg, the JPMorgan strategists wrote:
“Despite today’s correction we hesitate to abandon our unfavorable outlook for Bitcoin and crypto markets more typically. In spite of some enhancement, our signals remain overall bearish”.
The Strategists even more noted that based on fair value estimates and comparing BTC volatility to Gold, BTC will oscillate in the range in between $23,000 and $35,000. The strategists said: “It would still take rate decreases to the $25,000 level prior to longer-term momentum would signal capitulation”.
GBTC Discount Narrows Down
Interestingly, JPMorgan’s comments come just at a time when the GBTC discount has actually limited considerably over the last week. The affordable cost of the GBTC shares has pulled up 66% from last week, as reported by CoinGape.
Nevertheless, the GBTC shares still trade at around a 5% reduced cost in contrast to the net property worth. Many experts hold an opposite viewpoint to that of JPMorgan. This is because the GBTC shares were trading at high premium 6 months backs.
The Premium for GBTC shares turned to Discount previously this year in March 2021. Experts say that institutional gamers who bought the share at a strong premium won’t be costing the present discounted price. Hence, there would perhaps be less selling pressure with the June-end expiry duration.
The post JPMorgan: GBTC June-End Expiry Can Put Further Downward Pressure on Bitcoin (BTC) Price appeared initially on Coingape.