In a research note on Thursday, JP Morgan indicated a positive outlook for Bitcoin, suggesting that the digital currency has a “limited downside” from its current position. The financial giant’s analysis focuses on the dynamics involving the Grayscale Bitcoin Trust (GBTC) and the newly launched spot Bitcoin ETFs in the United States.
JP Morgan Foresees End Of Selling Pressure
The report acknowledges the recent 20% correction in BTC’s price over the past two weeks, attributing it largely to profit-taking on previous GBTC investments. JP Morgan analysts note, “Profit-taking on GBTC’s ‘discount to NAV trade’ has likely been a major driver behind Bitcoin’s correction; $4.3 billion has thus far exited GBTC since its conversion to ETF.”
They emphasize that this profit-taking is mostly responsible for the downward pressure on BTC’s price as funds exit the crypto space. However, the analysts are optimistic, stating, “We believe that most of this $4.3 billion GBTC outflo
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