Bitcoin (BTC) continues to face pressure.
The world’s largest cryptocurrency faced yet another rejection above $35,000 levels.
On Sunday, July 4th, Bitcoin moved all the way towards the $35,900 level but that only lasted for a few hours.
After erasing all of its weekend gains, Bitcoin is back below $34,000 as of Monday evening.
To start the currency attempt again and rise above the level of 34 thousand dollars, where the price of the currency is currently estimated at the time of publication of the article 34,870 dollars.
For the record, Bitcoin recorded its second worst quarterly performance in history after 2010, according to MarketWatch reports.
After a strong rally earlier this year, Bitcoin finished the second quarter of 2021 down 42%.
Which led to investors in the short term to incur large losses.
Meanwhile, long-term investors have piled on the dips.
The data shows that Bitcoin is showing a healthy trend with address activity slowly recovering.
But JPMorgan analysts have a different view.
“JP Morgan Analysts” Predict a Bitcoin Price Crash:
Bitcoin price may be heading for another crash, according to financial giant “JP Morgan”.
The prediction comes on the heels of the Grayscale Bitcoin Trust (GBTC) stock opening, a biannual event that is believed to have a volatile effect on the price of bitcoin.
Grayscale allows accredited investors to add BTC to Trust holdings and offers a stake in exchange.
Being a profitable investment tool many times, which is why it often trades at an excellent price, which provides great profit for its holders.
Shareholders can only sell their holdings after 6 months for cash, and the upcoming unlocking is one such event.
The next unlock on July 18 will see the sale of GBTC shares worth 4,1852.26 BTC.
This will be the largest one-day open for GBTC shares so far in history.
Financial giant JPMorgan believes that the opening of GBTC stakes could constitute a bearish outlook for the Bitcoin market.
This is primarily due to the fact that the opening event could result in a large quantity of GBTC shares being sold off, causing the value of these shares to drop dramatically, making spot Bitcoin more expensive than GBTC shares, and thus a bearish short-term outlook.
Contrary to the bearish view held by JPMorgan analysts for the upcoming opening, analyst “Willie Wu” believes that the GBTC opening will be neutral.
Willey explained that traders can buy bitcoin at a spot price, put it in a Grayscale fund, receive GBTC shares in exchange for it, and then sell the bitcoin futures market to hedge risk.
Traders can earn a return on their short positions in the lead up to the opening phase and sell their GBTC stake at the time of the lock-out.
Another important factor to note here is that GBTC is currently negative and analysts expect that shareholders will not sell their holdings at a discount.