Institutional investors could be anything that raises the price of Bitcoin (BTC), according to a new report by JPMorgan Chase.

In comments on December 18, cited by Bloomberg, strategists led by Nikolaus Banegertzoglou made recent predictions about the role of institutions in Bitcoin’s future.

JPMorgan: Bitcoin is “overbought”
According to JPMorgan, the large capital inflows seen this month should continue to avoid a price correction.

As Cointelegraph reported, the theories surrounding the recent price hike involve institutional investors buying into the over-the-counter trading that is consuming the available deals. It has been called a liquidity crunch which will only intensify over time, while another analyst this week said the cycle could fuel Bitcoin’s rise indefinitely.

However, for JPMorgan, buyers should follow the opposite scenario – loss.

As for Grayscale, which now manages $ 13.1 billion in cryptocurrencies, they concluded that the sheer volume of the flow meant that it was “too large to allow any position being publicized by impulse traders to create a sustained negative price action.”

Despite this, Bitcoin was still “in the overbought zone” to today’s price level of around $ 24,000 when the Relative Strength Index (RSI) rose above 70. A drop in price later on Monday brought the RSI lower to where Below this limit.

Pressure is mounting on gold prices
Previously, Panigirtzoglou et al. It was suggested that Bitcoin could benefit from a $ 600 billion cash injection from an institutional acquisition after insurer giant MassMutual unveiled $ 100 million.

Meanwhile, and based on previous warnings that gold is giving way to Bitcoin, the latest results reveal a new “trend” in shades of gray. Dealing with bitcoin could mean buying a grayscale unit when selling three units with the SPDR Gold Trust.

They added, “If this medium to long-term thesis is confirmed, the price of gold will suffer from structural adverse winds in the coming years.”

The relationship between gold and bitcoin has plummeted since October, when Bitcoin rose to its highest full-time high. The price of gold fell to $ 1,900 on Monday after a modest rebound from below $ 1,800.

Source: CoinTelegraph