The American financial firm, JPMorgan, predicts that the price of Bitcoin will drop considerably in a few hours. The reason for this supposed drop to $ 25,000 per coin, would be behind the semi-annual unlocking of the products of Grayscale Bitcoin Trust (GBTC). This unlocking is planned for next Tuesday, July 13.
In this sense, Nikolaos Panigirtzoglou, strategist of the aforementioned financial institution, assures that a strong sales pressure is approaching. According to his point of view, the expiration of investor contracts with the products of Grayscale, will not imply the renewal of them.
“The sale of GBTC shares that came out of the six-month lockdown period during June and July is an additional hurdle for Bitcoin.” For Panigirtzoglou, the unlocking of products that have been blocked for six months will lead to a massive sale of them. All of this translates into the imminent fall in the price of Bitcoin.
Bitcoin price dependent on JPMorgan predictions?
Last January, analysts from that bank announced that the price of the pioneer cryptocurrency would reach 140K. Now JPMorgan predicts that Bitcoin will fall. Taking into account the wrong predictions of this financial institution, can its new forecasts be considered reliable?
For some crypto market analysts, these predictions are made at random. Among them, Lark Davis stands out, who nicknames JPMorgan «the FUD teachers». These initials are used to refer to the intended comments that they generate fear, uncertainty and doubts.
Davis believes that indeed, there may be a downtrend due to the breakouts of Grayscale. However, this is not a long-term trend as the aforementioned JPMorgan analyst points out. «The good news is that after July, there will be no new unlocks“, Explain. He adds that this will be accompanied by a very bullish month of August.
Another aspect that could counter the opinions of JPMorgan, which predict the fall of Bitcoin, is the possible approval of a Bitcoin ETF.
A Bitcoin ETF on the way?
Although the United States Securities and Exchange Commission (SEC) repeatedly refused to approve a Bitcoin ETF, hopes were reborn recently. During a recent interview with CNBC, SEC Commissioner Hester Peirce raised the possibility of an approval for the second half of the year.
He stressed that the repeated denial to allow an ETF is “ridiculous” and not a characteristic act of the SEC. He mentioned that the maturity of Bitcoin as an asset is a reality that is in sight. In such a way, if only one of the expected ETFs were approved, the price of Bitcoin would undo the comments that predict its fall, among them, those of JPMorgan.
However, it should be considered that, to date, the possibility of the SEC approving a Bitcoin ETF is mere speculation. Meanwhile, the possibility remains that the predictions of JPMorgan analysts will be fulfilled at least in part.
Therefore, the aforementioned Davis suggests that, when it comes to Bitcoin falls, they are limited in nature. Therefore, he calls on investors to maintain their positions. He assures that, for his part, «will keep buying Bitcoin. If speculators succeed in driving down its price, then it will buy even more, he said.