Bitcoin Price Could Stabilize as GBTC Sell Off Ends: JPMorgan Analysts
JPMorgan: Bitcoin price could stabilize as Grayscale ETF sell-off ends, shifting $1.3B to cheaper funds.
Analysts from JPMorgan have made a statement regarding Grayscale's ETF recent sell-off. The analysts announced their belief that the selling of Grayscale's bitcoin ETF (GBTC) is over, this could mean that there’s a reduced chance that the price of bitcoin will go any lower.
After investors made a big sell-off of $429 million in GBTC on Wednesday, the total sales reached about $4.4 billion in nine days.Amid these sales, Bitcoin's price dropped below $40,000 this week, after reaching $49,000 following the ETF approvals.
JPMorgan had previously predicted that $3 billion would leave the GBTC ETF as investors started selling it when its price was lower than Bitcoin's actual value. But now, JPMorgan believes that this massive sell-off is over. The FTX estate was one of the sellers, selling about $1 billion in GBTC.
The analyst, Nikolaos Panigirtzoglou also reported that another $1.3 billion were moved from GBTC to cheaper bitcoin ETFs. Unfortunately, they believe people will keep selling their GBTC if Grayscale doesn't lower its high fee of 1.5%.
Tuesday's data showed an increase in Bitcoin investments. Open interest in Bitcoin rose slightly in the last 24 hours.
