Global financial institution JPMorgan has warned that Grayscale’s Bitcoin (BTC) fund, GBTC, could suffer further selloff in the coming weeks. According to the bank, the $3 billion inflow into spot BTC ETFs (Exchange Traded Funds) ‘reflects a rotation from existing bitcoin vehicles.‘ The bank further stated that the shift shows ‘retail investors shifting from digital wallets held with exchanges/retail brokers to cheaper spot bitcoin ETFs.‘
Also Read: Bitcoin ETF Trade Volume Reaches $9.7 Billion in Three Days.
Grayscale converted its GBTC fund into a spot BTC ETF after the SEC’s (Securities and Exchange Commission) historic approval earlier this month. JPMorgan analyst Nikolaos Panigirtzoglou highlights that BTC’s price fell 10% after the spot BTC ETF launch. Panigirtzoglou states, ‘It appears that profit taking, i.e., buy the rumor/sell the fact dynamics, took place in recent days as we had previously feared.‘
Since Jan. 12, Grayscale’s Bitcoin fund, GBTC, has seen over $2 billion in outflows.
Will Bitcoin’s price take a hit?
![Bitcoin: ChatGPT Predicts How BTC Could Hit $100k in 2024](https://watcher.guru/news/wp-content/uploads/2023/12/015487dd-1024x585.jpg)
![Bitcoin: ChatGPT Predicts How BTC Could Hit $100k in 2024](https://watcher.guru/news/wp-content/uploads/2023/12/015487dd-1024x585.jpg)
According to Panigirtzoglou, the outflows from Grayscale’s GBTC fund will add ‘further pressure on bitcoin prices over the coming weeks.‘ The analyst adds, ‘If the previous $3bn estimate proves correct and given $1.5bn has exited already, then there could be an additional $1.5bn still to exit the bitcoin space via profit taking on GBTC.‘
Bitcoin’s (BTC) price is already on the verge of falling below $41,000. The asset’s price is down 1.3% in the last 24 hours, 3.5% over the previous week, and 5.7% since December.
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Also Read: Bitcoin vs. Gold: Cathie Wood Endorses the Digital Revolution
Moreover, CoinCodex anticipates a bearish outlook for Bitcoin (BTC) in the coming weeks. According to the platform, BTC’s price could fall to $36,182 by Dec. 26, 2024. The price drop represents a fall of almost 12% from current levels. Nonetheless, the platform anticipates BTC’s price to rebound next month.
![](https://watcher.guru/news/wp-content/uploads/2024/01/Screenshot-2024-01-22-at-11.16.47-AM-1024x383.png)
Furthermore, BTC will undergo its halving cycle in April, a bullish event. We may see the asset’s price gain momentum in the weeks before the halving.