BTC IDR: According to JPMorgan Bitcoin Price Pressure Starts to Decline Due to GBTC Selling

With the development of the cryptocurrency market, digital currencies such as Bitcoin (BTC) are becoming a major concern, especially in relation to the Indonesian Rupiah (IDR). Recently, JPMorgan analysts shared their views on Bitcoin, especially in the context of the Grayscale Bitcoin Trust (GBTC) sale.

BTC IDR: GBTC Selling Analysis and Its Impact on Bitcoin

GBTC Selling Nearly Completed, Bitcoin Price Pressure Reducing

Analysts from JPMorgan predict that downward pressure on Bitcoin prices will be limited as most of the GBTC selling has been completed. GBTC, which was recently converted into a spot Bitcoin exchange-traded fund (ETF), has seen outflows of $4.3 billion since two weeks ago. The figure topped JPMorgan's initial estimate of around $3 billion. This suggests that most of the GBTC selling has already occurred, according to Nikolaos Panigirtzoglou, analyst team leader at JPMorgan.

Check Price :

Implications for Bitcoin Prices Against Rupiah (BTC IDR)

Today's Bitcoin price against Rupiah (IDR) is IDR 630,242,000, down more than 20% in the last two weeks following the approval of a spot Bitcoin ETF in the US. The sale of profits by GBTC investors is one of the causes of the decline in Bitcoin prices. However, JPMorgan analysts argue that the worst appears to be behind us. They also warned that if GBTC's 1.5% fee is not reduced soon, the fund could experience sustained outflows and lose market share to competitors.

GBTC Competitors: Blackrock and Fidelity

According to JPMorgan analysts, there are two emerging competitors for the Grayscale Bitcoin ETF: Blackrock and Fidelity. These two entities have attracted inflows of $1.9 billion and $1.8 billion respectively. Both have much lower fees, just 25 basis points (no deduction) compared to 150 basis points for GBTC.

Bitcoin Spot ETF Improves BTC Price Discovery Process

The introduction of spot Bitcoin ETFs in the US adds a new layer to the Bitcoin price discovery process, aligning it with traditional markets, particularly in equities where ETFs are common. JPMorgan analysts stated that while the introduction of a spot Bitcoin ETF may at first glance appear to add fragmentation, in practice it will increase market depth and liquidity. They hope that the emergence of spot Bitcoin ETFs will make the Bitcoin price discovery process more efficient.

GBTC Plans for Covered Call ETF

Lastly, GBTC's plan to introduce a covered call ETF, if approved, would be a boost to the fund as well as the Bitcoin derivatives market. This conclusion shows positive potential for the Bitcoin market as a whole.

Conclusion

JPMorgan analysts' views on the Bitcoin and GBTC markets offer valuable perspective in the current context. Despite the challenges, Bitcoin's long-term prospects, especially in relation to the IDR, remain an interesting area to watch.

Read Also:

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.