Cryptocurrencies
Bitcoin Return to $40,000 in Doubt as Flows to Key Fund Slow
- JPMorgan strategists flag risk of unwinding in Bitcoin futures
- Bitcoin prices have been volatile, trading in the mid-$30,000s
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Cryptocurrency enthusiasts counting on Bitcoin to bounce back above the $40,000 level face a challenge due to faltering demand for the biggest fund tracking the digital asset, according to JPMorgan Chase & Co.
The pace of flows into the $20 billion Grayscale Bitcoin Trust “appears to have peaked” based on four-week rolling averages, JPMorgan strategists led by Nikolaos Panigirtzoglou said in a note Friday. The fund slid 22% over the past two weeks through Jan. 22, outpacing a 17% drop in Bitcoin in the same period.