JPMorgan Chase & Co., an American multinational investment bank, believes bitcoin (EXANTE: Bitcoin) can continue to decline as the recent tumble cleared speculative "froth," Bloomberg has learned, citing a note written by the bank's strategists.
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A group of JPMorgan's analysts led by Nikolaos Panigirtzoglou thinks momentum traders could have played a big role in the slide by unwinding long bitcoin futures positions.
"The previous froth in momentum traders’ positioning has been cleared to a large extent. Momentum traders have room to further propagate," the JPMorgan strategists wrote in the report.
JPMorgan also projects that if crypto-focused trusts, including the one by Grayscale, fail to receive additional inflows over the coming weeks, it would also "cast doubt to the idea that institutional investors such as family offices have embarked on a trend of embracing Bitcoin as digital gold replacing traditional gold as a long-term investment."
Earlier in November, the assets under management of popular crypto manager Grayscale successfully passed the $10 billion mark. Specifically, the value of Grayscale's assets under management (AUM) is above $10.4 billion. Approximately $8.85 billion (80%) out of these is in the Grayscale Bitcoin Trust (GBTC). In terms of BTC, the company owns about 480,900 BTCs.
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