IN BRIEF
JP Morgan analysts cite regulatory concerns and profit-taking for the recent sale.
They also said that there was room for further downward movement driven by aggressive traders.
Analysts said Grayscale would play a leading role in the continued rise or fall of Bitcoin.
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The recent drop in Golden Profit price has erased some speculative „foam“, but further downward trends are still possible, according to analysts at JPMorgan Chase.
For context, the price of Bitcoin (BTC) began last week with a significant rise, reaching a new annual high of $19,500 before suffering a sharp decline (nearly 14%) on November 26.
The drop coincided with Black Friday, as the BTC/USD fell around the same time as the famous discount shopping day, which led many to note the comparison.
I assume that the sale of Bitcoins on Black Friday is officially over. I hope you’ve filled up
According to a Bloomberg article, the main causes of the recession were profit-taking, concern about new regulations and the unfolding of Bitcoin futures contracts. Since then, the price has recovered from the mini-crash and has risen again.
According to BeInCrypto’s analysis, its rise is probably a retracement rather than the beginning of a new upward trend.
Although Bitcoin rebounded after sharp price declines during the Thanksgiving vacation, JPMorgan Chase analysts also predicted further declines.
As quoted in Bloomberg, Nikolaos Panigirtzoglou, managing director of J.P. Morgan, said: „Dynamic traders have room to spread further“ [a decline in the price of Bitcoin].
The importance of Grayscale
Panigirtzoglou also highlighted Grayscale, and its important Bitcoin Trust, as playing a central role in the future development of BTC courses.
The BTC has long been important because it would be favored by institutional investors wishing to gain exposure to Bitcoin (and other digital assets).
Grayscale has significantly increased its holdings in crypto since the beginning of 2020. After eleven months of ever-increasing increases, as of November 27, Grayscale’s Assets Under Management (AUM) reached a new all-time high.
