JPMorgan Still Bearish On Bitcoin, Expects Decline To $25,000: Report

JPMorgan Chase & Co anticipate a further decline in the price of Bitcoin BTC/USD in the coming weeks.

What Happened: According to a report from Bloomberg, JPMorgan strategists expect that the selling of shares in Grayscale Bitcoin Trust GBTC will become a new source of pressure for Bitcoin.

“Despite this week’s correction we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally,” said JPMorgan strategist Nikolaos Panigirtzoglou in a note to clients.

“Despite some improvement, our signals remain overall bearish.”

Why It Matters: Citing weak flows and price dynamics from last month’s selloff as the reason behind Bitcoin’s recent declines, Panigirtzoglou noted that the possible sales of shares in the Grayscale Bitcoin Trust upon the expiry of a six-month lockup period could be an additional headwind.

Panigirtzoglou was referring to the 16,000 BTC, worth $650 million, which will be unlocked from GBTC and released to investors on July 18.

Read also: Goldman Sachs Trades Tokenized Treasury Bonds On JPMorgan's Private Blockchain Network For The First Time

The JPMorgan strategists also stated their belief that Bitcoin’s “fair value” is between a range of $23,000 and $35,000 in the medium term, based on a comparison of its volatility versus gold.

“It would still take price declines to the $25,000 level before longer-term momentum would signal capitulation,” they said.

Price Action: Bitcoin was trading at $32,225 at the time of writing, up 1.19% in the past 24-hours. The leading cryptocurrency accounted for 46.29% of the market, with $34 billion in daily trading volume.