JPMorgan Says Quant-Fueled Bitcoin Drop May Have Further to Go

Strategists say last week’s slump cleared some “froth”
Flows to Grayscale Bitcoin Trust among keys to outlook

Bitcoin Hits New Record, Close to $20,000 Mark

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By Joanna Ossinger

November 30, 2020 at 4:57 AM UTC

This article is for subscribers only.

Bitcoin’s recent tumble cleared some speculative “froth” but further declines remain possible, according to JPMorgan Chase & Co.

Momentum traders such as commodity trading advisors and other quantitative funds likely played a big role in the slide by unwinding long Bitcoin futures positions, strategists led by Nikolaos Panigirtzoglou wrote in a Nov. 27 note.