Bitcoin’s[1] price had been on a rally once again and the reason for this surge has been the addition of “Bitcoin” on Elon Musk’s profile. With this, Bitcoin’s price jumped almost 16% in a span of 5 hours yesterday, going up to around $37k, and at the time of writing the price has seen a correction and trades at $33,508. Despite Bitcoin’s pump, Binance’s CEO, Changpeng Zhao [CZ] asserted that this was still the flat region before the peak for the king coin’s price peaks.
In a recent interview with Crypto Banter[2], CZ showed optimism for Bitcoin’s future and stated that the new ATH was now a foundation and there is an undiscovered territory in the crypto space. Apart from trading, there has been a growth in adoption for decentralized finance [DeFi] and DApps which may only increase going further.
“I kind of predict we’re just seeing the flat part of the wave yet. The big wave hasn’t come yet.”
However, JPMorgan strategists believe that Bitcoin’s price may face challenges to bounce back to $40,000. One of the biggest funds believed that these challenges could stem from the faltering demand for BTC. As per the Strategists led by Nikolaos Panigirtzoglou the statement[4] read,
“At the moment, the institutional flow impulse behind the Grayscale Bitcoin Trust is not strong enough for Bitcoin to break out above $40,000.”
They added that the “risk is that momentum traders will continue to unwind Bitcoin futures positions.”
The above chart signaled that unlike other falls, this fall of Bitcoin’s price did not align with the Grayscale Bitcoin Trust increasing its holding. Thus, the strategists believed that the firm was losing momentum to keep up with the BTC trend
