Will Bitcoin Price Continue to Face More Downturn? JP Morgan Warned Investors

The post Will Bitcoin Price Continue to Face More Downturn? JP Morgan Warned Investors appeared first on Coinpedia Fintech News

Bitcoin has been performing under a cloud since the next day Bitcoin ETF approval got approved. There may be several reasons for that, it may be because Bitcoin ETF was hype which later resulted in a downturn of Bitcoin or it may be GBTC investors who are continuously taking profits.

JP Morgan Being Cautious For Investors

JP Morgan asset management firm recently warned investors that this downturn may go down in the coming weeks as many investors are taking temporary profits as they are selling more than buying. GBTC was converted into a spot Bitcoin Spot ETF the previous week and has already seen outflows of over $1.5 billion. JPMorgan anticipated an outflow of up to $3 billion from GBTC due to the potential of speculative investors taking profits.

“If the previous $3 billion estimate proves correct and $1.5 billion has already exited, there could be another $1.5 billion to exit the Bitcoin space via profit-taking in GBTC, which could put further pressure on Bitcoin prices in the coming weeks.”

The Grayscale Bitcoin Trust investors had been buying the shares at a substantial discount to net asset value to position cause they knew this would be great profit in the future and this selling pressure resulted in Bitcoin’s low performance.

Market expectations are not meeting reality even after Bitcoin ETF approval this may be due to regulatory warnings as Gary Gensler said that he wouldn’t endorse Bitcoin even if he voted for the Bitcoin ETF approval.