JPMorgan strategists have said the odds of a bitcoin correction would rise if flows into the Grayscale Bitcoin Trust slow down dramatically.
- The digital asset manager's bitcoin inflows “are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics,” the strategists said.
- They stopped short of saying bitcoin is overbought after the cryptocurrency soared to consecutive record highs in recent weeks.
- Bitcoin hit a new record price of $24,273 on Sunday. At the time of publication, prices were lower at around $23,450.
- New York-based Grayscale is owned by Digital Currency Group, the parent company of CoinDesk. The firm allows institutional investors to buy shares in its crypto trusts, gaining exposure to the asset class without having to own the asset directly.
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