Large crypto investors have reduced the volume of investments in cryptocurrency by 97%

In the first week of January, the number of funds invested by large crypto investors in digital assets amounted to only $ 29 million, and in the last week before the holidays – more than $ 1 billion. JPMorgan warned: if the situation worsens, this could lead to a drop in the price of bitcoin.

In the first week of January, institutional investors invested only $ 29 million in cryptocurrency, according to the CoinShares fund in its report. Thus, the volume of investments of large players decreased by 97% compared to the last week before Christmas on December 25 – then it amounted to a record $ 1.09 billion.

CoinShares also stressed that in early January, the capital outflow was recorded for multinomial crypto-instruments. This may indicate that large players have begun to take profits, the company believes.

From September to early January, bitcoin showed significant growth – by January 8, the price rose to $ 42 thousand per coin. Yesterday, January 11, there was a correction in the market. The value of BTC fell sharply – below $ 31 thousand, and then partially recovered, to 35 thousand.

The opinion of analysts of investment bank JPMorgan

The investment bank JPMorgan believes that the market may experience a new decline, which will be caused by a temporary increase in the outflow of funds from institutional investors. The company’s strategists, led by Nikolaos Panigirtzoglu, suggested that the launch of a Bitcoin exchange-traded fund (ETF) could be approved in the US. In this case, the big players are likely to start taking funds invested in the Grayscale crypto fund, which is now a monopolist in this market. This could cause a strong, short-term correction in the price of BTC, Bloomberg reports.

“The cascading capital outflow from Grayscale is likely to have negative short-term impacts on bitcoin, given the importance of the fund and the volume of its assets,” explained JPMorgan.

As of January 11, the volume of assets managed by Grayscale was $ 24.5 billion. More than $ 20 billion of funds were invested in bitcoin.

01/11/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $24.5 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/WgFd5UCENP

— Grayscale (@Grayscale) January 11, 2021

In early January, JPMorgan strategists predicted a rise in the price of bitcoin to $ 146 thousand in the long term. They stressed that it is impossible to exclude the possibility of speculative mania, which in the near future may provoke an increase in the rate of the first cryptocurrency to $ 50-100 thousand, but such price levels will turn out to be unstable.

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