TL;DR Breakdown
- Ethereum’s current campaign adversely affects Bitcoin.
- The low number of institutional investors hinders Bitcoin’s rise.
- Bitcoin’s market share reduces.
JP Morgan Chase and Co, a Wall Street bank stated that the amount of institutional investors is not enough to return Bitcoin to its all-time high.
JP Morgan, a full investment company stated that the drop in Grayscale’s inflow may hinder Bitcoin from attaining the $42K mark again. According to Bloomberg, currently, Grayscale Bitcoin Trust’s institutional flow rate is not firm enough for BTC to break through to at least $42K.
Low amount of Institutional Investors
Funds flow rate from institutional Investors into the largest cryptocurrency asset manager serves as the general test for interest in BTC from major foundries. About a month ago, JP Morgan financial analysts predicted a drop in the inflow of funds which could accelerate a market correction. As at that time, Bitcoin was trading lower than $24K.
Following Bitcoin’s price hike and attaining the present all-time high of $42K on the 8th of January, the campaign became unstable and a progression of correction accompanied it. On the Bitstamp exchange, BTC is presently trading at $33,371.
JP Morgan observed and stated that Grayscale’s inflow had a more abrupt drop when compared to that of BTC itself. Grayscale has a 22% drop while Bitcoin had a 17% drop in the previous week.
Grayscale Bitcoin Trust opened for the year on the 12th of January after shutting doors on new investors on the 21st of December and according to their update on January 22nd, the firm is presently having assets valued to be nothing less than USD 20 Billion under their care.
Michael Sonnenshein, the Chief Executive Officer of Grayscale Bitcoin Trust posted on Twitter that they are not sure whether some of the company’s fresh trust is tied to Bitcoin or several altcoins.
Asides from the number of Bitcoin’s institutional investors currently seeing a decline, Bitcoin’s recovery has also been hindered by a fierce Etheruem campaign which was followed by double-digit profit in the decentralized finance system.
In the early hours of today, the biggest altcoin struggled to hit another all-time high of USD 1,475 on the Binance exchange. Currently, Bitcoin’s domination has dropped to 62.45% which is its lowest domination percentage since November last year.
