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JPMorgan Says Flows to Into Major Crypto Fund Are Key to Bitcoin’s Outlook

  • Strategists indicate Bitcoin likely ‘overbought’ after rally
  • $1 billion monthly flows to Grayscale fund providing support

The odds of a Bitcoin correction would increase if the flows into the world’s largest traded cryptocurrency fund slow significantly, according to strategists at JPMorgan Chase & Co.

The Grayscale Bitcoin Trust’s assets under management have climbed to $13.1 billion from $2 billion at the start of December last year, amid a tripling in the digital currency’s price so far in 2020. Inflows into the fund are running at about $1 billion per month, the strategists led by Nikolaos Panigirtzoglou wrote in a note Friday.