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Are institutional investors behind the meteoric rise of bitcoin this month?

Are institutional investors behind the meteoric rise of bitcoin this month?

Quick take

1 minute read

  • According to a new report from JP Morgan Chase, institutional investors could be a catalyst for the increase in bitcoins value.
  • Nikolaos Panigirtzoglou, a crypto strategist added to recent forecasts in regards to the role of insert institutions for the future of bitcoin in comments made on the 18th of December last week.

According to a new report from JP Morgan Chase, institutional investors could be a catalyst for the increase in bitcoins value.

Nikolaos Panigirtzoglou, a crypto strategist added to recent forecasts in regards to the role of institutions on the future of bitcoin in comments made on the 18th of December last week.

According to the company, The inflows that have been experienced throughout December need to continue in order to avoid a price correction.

For JP Morgan, buyers need to be able to keep up the pace in order to avoid losses.

One big institution that has been heavily involved in industry throughout 2020 is Grayscale. They currently have over $13 billion worth of crypto assets under management and they have argued that they are “too big to allow any position unwinding by momentum traders to create sustained negative price dynamic.“

There are numerous theories floating around the industry in regards to the recent price spikes which include institutional investors purchasing through over-the-counter trades that suck up the available supply for other retail traders. Many have called this a liquidity crisis which could only accelerate over time.

Bitcoin has had an exciting few weeks to say the least. Currently priced at over $23,000 at the time of writing, bitcoin seems to be fluctuating between $22,000 and $23,000 in some extremely volatile action. Over the past seven days, bitcoin is up over 20% and seems to be only rising. That being said, we are not financial advisors and this is not financial advice. Please do your own research before investing in crypto assets.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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