Bitcoin's (EXANTE: Bitcoin) failure to break through the $40,000 key mark could trigger exodus of trend-following investors, Bloomberg reports, citing JPMorgan's analysts team including Nikolaos Panigirtzoglou. The analysts note the inflow of cash into the Grayscale Bitcoin Trust will help determine the outlook of the cryptocurrency.
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"The flow into the Grayscale Bitcoin Trust would likely need to sustain its US$100 million per day pace over the coming days and weeks for such a breakout to occur," the analysts said.
The similar case happened in late November, except with $20,000 as the test line. Back then, institutional investments into the Grayscale trust pushed bitcoin's rally even further, the strategists believe.
Meanwhile, Pantera Capital Founder and CEO, Dan Morehead, believes that the largest cryptocurrency by market capitalization is on the path of surging over 200% over the next eight months. Bitcoin's annual maximum is expected to happen by August 2021 with reaching the $115,000 mark.
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