TL;DR Breakdown
- JP Morgan Chase strategists say Bitcoin is overbought
- The bank also says the crypto asset would make gold suffer
JP Morgan Chase strategists in a recent report by Bloomberg has been quoted to be describing Bitcoin as being “overbought.”
According to these bank analysts, Bitcoin must continue to have a large scale inflow like it had seen in recent times in order for the coin not to have a price correction.
The strategists also noted that Grayscale who currently hold over $13 billion as assets under management have a monthly inflow of $1 billion. They further added that due to this size of their inflow, they wouldn’t be welcoming to any new position that would lead to a sustained negative price.
The JP Morgan Strategists were also of the opinion that interest in the coin by institutional investors is also playing a pivotal role in the rise of the digital asset.
Cointelegraph also reported that institutional investors mostly got their crypto assets over the counter supply that sucks up all available supply.
However, despite all of this, Bitcoin is said to have been “overbought” around the $24k Mark.
Bitcoin would make Gold suffer – JP Morgan
JP Morgan Chase in a recent Bloomberg post has said that the current rise of crypto assets is coming at the expense of gold.
According to the bank’s quantitative strategist, Nikolaos Panigirtzoglou, Bitcoin funds have grown massively while there has been a drop in the gold funds. This run can be expected to continue as more institutions would look to continue to invest in cryptocurrency.
The bank’s view is one of the minority who believes that the crypto industry is becoming a viable investment asset class.
Bitcoin price eyes $30k mark
We recently reported how Bitcoin price started the year strongly and is only a few hundred dollars away from the $30k mark.
The price of the asset has remained so in the past 24 hours and it has even rose from its $29,629 price to $29,789.
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