- Bitcoin prices have given headaches to traders and investors.
- The upcoming GBT unlock coming on 18th July has struck fear in many hearts.
- JP Morgan’s analysis claimed that Bitcoin will drop down to the twenties after the event.
JP Morgan has made multiple predictions about the cryptocurrency market and this time, after considering the GBTC Unlock event, JP Morgan predicts that Bitcoin price will drop down to the twenties after July 18.
Grayscale Bitcoin Trust is the world’s biggest digital asset fund that has been in existence since 2013. Anyone who seeks exposure to Bitcoin can invest in the shares of the firm and the money is locked up for 6 months. Every 6 months, Bitcoin is released and this phenomenon is termed GBTC Unlocking.
Will GBTC Unlock cause a huge drop?
According to JP Morgan, this event will cause huge damage to the price of cryptocurrencies, and eventually, it claims that the price will dive into the twenties. According to Shane Ai, the product researcher at Bybit, the GBTC Unlock in July are a result of investments made around 6-months ago when the premiums to spots were around 30 percent.
Also, the researcher also explained that the absence of fresh private placements indicates that new selling pressure of BTC is a distant dream and highly unlikely.
JP Morgan also stated that the shares that were sold in June and July by investors who wanted to exit the 6-month lock-up period suggest a similar movement. Well, many analysts have given their own opinion on the matter.
According to the analysis by crypto exchange Kraken, we won’t see Bitcoin fall due to GBTC Unlock in the near future. It also stated that in the worst-case scenario, the effects won’t be seen anytime soon. Most of the investors in GBTC are huge institutions that would hold rather than sell off their Bitcoins.
After GBTC Unlock, if this institution chooses to sell their BTCs, it would make way for an increase in the buying pressure in the market. If they would hold their BTCs, we won’t see the drastic fall as predicted by JP Morgan.
The biggest GBTC Unlock is going to happen on July 18th wherein 16,240 BTC will be unlocked. This will be the biggest unlocking event and according to analysis, the possibility of BTC going towards the twenties is next to zilch.