US financial firm JPMorgan predicts that the price of Bitcoin will fall considerably in a few hours. The reason for this supposed drop to $ 25,000 per currency, would be behind the six-monthly unlocking of the products of Grayscale Bitcoin Trust (GBTC). This release is planned for next Tuesday, July 13.
In this sense, Nikolaos Panigirtzoglou, strategist of the aforementioned financial institution, says that a strong selling pressure is approaching. According to his point of view, the expiration of investor contracts with the products of Grayscale, will not imply the renewal of the same.
“The sale of GBTC shares that came out of the six-month lockdown period during June and July, are an additional hurdle for Bitcoin.” For Panigirtzoglou, unlocking products that have been locked for six months will lead to a massive sale of them. All this translates into the imminent fall in the price of Bitcoin.
Bitcoin price depends on JPMorgan predictions?
Last January, analysts at that bank announced that the price of the pioneer cryptocurrency would reach 140K. Now JPMorgan predicts that Bitcoin will fall. Considering this financial institution’s misguided predictions, can its new forecasts be considered reliable?
For some crypto market analysts, these predictions are made randomly. Among them, Lark Davis stands out ,who nicknames JPMorgan”the masters of FUD». These initials are used to mention intentional comments that generate fear, uncertainty and doubts.
Davis considers that certainly, there may be a downtrend due to the unblocks of Grayscale. However, this is not a long-term trend as the aforementioned JPMorgan analyst shows. «The good news is that after July, there will be no new unlocks», explain. He adds that this will be accompanied by a very bullish month of August.
Another aspect that could run counter to JPMorgan’s views, which predict Bitcoin’s downturn, is the possible approval of a Bitcoin ETF.
A Bitcoin ETF on the way?
Although the U.S. Securities and Exchange Commission (SEC) repeatedly refused to approve a Bitcoin ETF, hopes were recently reborn. During a recent interview with CNBC, SEC Commissioner Hester Peirce raised the possibility of an approval for the second half of the year.
He noted that the repeated refusal to allow an ETF is “ridiculous” and not a characteristic SEC act. He mentioned that the maturity of Bitcoin as an asset, is a reality that is in sight. Thus, if only one of the expected ETFs were approved, the price of Bitcoin would undo the comments that predict its fall, including those of JPMorgan.
However, it should be considered that, to date, the possibility of the SEC approving a Bitcoin ETF, is mere speculation. Meanwhile, the possibility remains that the predictions of JPMorgan analysts will be fulfilled at least in part.
For this reason, the aforementioned Davis suggests that, when talking about Bitcoin falls, they have a limited character. It therefore calls on investors to maintain their positions. He assures that, for his part, “it will keep buying Bitcoin.” If speculators manage to lower its price, then it will buy even more, he said.
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