JPMorgan Warns of Incoming Bitcoin Selloff With Anticipated $3 Billion Grayscale Outflow

JPMorgan Analyst Predicts Bitcoin Price Decline

Global investment bank JPMorgan has issued a warning about an upcoming selloff in Bitcoin, citing an anticipated outflow of $3 billion from Grayscale's Bitcoin fund. The bank's analyst, Nikolaos Panigirtzoglou, believes that this outflow will put further pressure on Bitcoin prices in the coming weeks. He also explained that the recent $3 billion inflow into new spot Bitcoin exchange-traded funds (ETFs) can be attributed to a shift from existing Bitcoin vehicles or retail investors moving from digital wallets held with exchanges/retail brokers to cheaper spot Bitcoin ETFs.

Impact of Spot Bitcoin ETFs and Grayscale Outflow

Panigirtzoglou shared his outlook on Bitcoin's price in a recent post on Linkedin. He specifically highlighted the impact of the launch of spot Bitcoin ETFs and the outflows from Grayscale's Bitcoin fund. Grayscale converted its Bitcoin trust (GBTC) into a spot Bitcoin ETF after receiving approval from the U.S. Securities and Exchange Commission (SEC) along with 10 other funds on January 10.

Since the launch of spot Bitcoin ETFs, the price of Bitcoin has declined by over 10%. Panigirtzoglou attributes this decline to profit-taking and the "buy the rumor/sell the fact" dynamics. BTC's price initially rose past $47,000 in anticipation of the spot Bitcoin ETF approval but dropped after the approval, currently trading at $41,697.

The outflow of $1.5 billion from Grayscale's GBTC fund has had a negative impact on Bitcoin's price. Panigirtzoglou noted that investors who had previously bought the GBTC fund at a discount to NAV in preparation for its eventual ETF conversion are now exiting the Bitcoin space entirely instead of shifting to cheaper spot Bitcoin ETFs. If the previous estimate of $3 billion invested into GBTC in the secondary market is accurate and considering that $1.5 billion has already exited, there could still be an additional $1.5 billion exiting the Bitcoin space via profit-taking on GBTC. This will further contribute to the downward pressure on Bitcoin prices in the coming weeks.

Outflows from Grayscale's Bitcoin ETF and Other Spot Bitcoin ETFs

Since January 12, Grayscale's Bitcoin ETF has seen an outflow of 50,106.59 BTC, valued at over $2 billion.

Panigirtzoglou also analyzed the inflows into other spot Bitcoin ETFs that launched on January 11, such as Blackrock's Ishares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC). These ETFs have received a total inflow of $3 billion in just four days, comparable to the inflows seen during previous Bitcoin product launches like the launch of CME Bitcoin futures or futures-based Bitcoin ETFs. The majority of this inflow represents a rotation from existing Bitcoin vehicles, such as futures-based Bitcoin ETFs, which have experienced outflows of nearly $300 million since last Thursday. Additionally, retail investors are shifting from digital wallets held with exchanges/retail brokers to cheaper spot Bitcoin ETFs.

It is crucial to monitor JPMorgan's bitcoin price prediction and the estimated outflow from Grayscale as it may impact the overall market sentiment. Investors should stay informed and make educated decisions based on the latest developments.

What are your thoughts on JPMorgan's bitcoin price prediction and the anticipated outflow from Grayscale? Share your opinions in the comments section below.

Frequently Asked Questions

Are precious metal IRAs a good way to invest?

How willing you are to risk your IRA account losing value will decide the answer. You can use them if your cash balance is $10,000, as long you don't expect it to grow quickly. These might not be the best options if you're looking to invest in assets that have the potential to rise in value (gold) and plan to save for retirement for many decades. They can also come with fees that could cut into any gains.

How much do gold IRA fees cost?

The average annual fee of an individual retirement account is $1,000. There are many types and types of IRAs. These include traditional, Roth or SEP-IRAs as well as SIMPLE IRAs. Each type has their own set of rules. If the earnings are not tax-deferred you could be subject to taxes. You must also consider how long you want to hold onto the money. If you plan on holding onto your funds for longer, you'll likely save more money by opening a Traditional IRA rather than a Roth IRA.

Traditional IRAs allow you to contribute up $5,500 annually ($6,500 if 50+). A Roth IRA gives you the ability to contribute unlimited amounts per year. The difference is simple. With a traditional IRA you can withdraw the money when you retire and pay no taxes. With a Roth IRA, however, any withdrawals will be subject to taxes.

How can you withdraw from a Precious metal IRA?

If you have an account with a precious-metal IRA company like Goldco International Inc, you might consider withdrawing your funds. When you sell your metals, the value of those funds will be higher than if it was kept in the account.

If you are unsure how to withdraw money from your precious metal IRA, here is what you need to know.

First, you need to find out if the provider of your precious metal IRA allows withdrawals. This option is available from some companies, but not all.

Second, you should determine if your metals are tax-deferred. This benefit is available from most IRA providers. Some providers do not offer this benefit.

Third, verify with your precious Metal IRA provider if you are charged any fees for taking these steps. It is possible that the withdrawal will be more expensive.

Fourth, ensure that you keep track your precious metal IRA investment for at least 3 years after selling them. For capital gains to be calculated, wait until January 1, each year. You will then need to file Form 8949 which contains instructions on how to calculate the amount of gain that you have realized.

The IRS requires that you report your sale of precious metals. This will ensure you pay taxes on all the profits that your sales generate.

Finally, consult a trusted accountant or attorney before selling your precious metals. They can help you avoid costly mistakes and ensure you comply with all regulations.


  • SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (
  • You can only purchase gold bars of at least 99.5% purity. (
  • The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (

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How To

How to buy gold for your Gold IRA

The term precious metal refers to gold, silver, palladium and rhodium. It refers only to elements with atomic number 79-110 (excluding helium). These elements are considered valuable because they are rare and beautiful. The most common precious metals are gold and silver. Precious metals are often used as money, jewelry, industrial goods, and art objects.

Due to supply and demand, the price of gold fluctuates every day. There has been a significant demand for precious metals over the past decade as investors look for safe havens in unstable economies. Prices have risen significantly due to this increased demand. However, the increasing cost of production has made some people concerned about investing in precious metals.

Gold is a solid investment as it is both rare and long-lasting. Like many investments, gold doesn't lose value. Additionally, you can sell and buy gold without any taxes. There are two methods to invest gold. You can either purchase gold bars and coins or invest in futures gold contracts.

You can instantly have liquidity with physical gold bars and coins. They're easy to trade and store. They aren't very effective in protecting against inflation. If you want to protect yourself from rising prices, consider purchasing gold bullion. Bullion is physical gold, which comes in many sizes and shapes. Some billions come in one-ounce pieces, while others come in larger sizes like kilo bars. Bullion is stored in vaults that are protected against theft and fire.

If you prefer owning shares of gold rather than holding actual gold, you should consider buying gold futures. Futures allow you to speculate as to how the gold price will change. You can expose yourself to the price of gold by buying gold futures without having to own the physical commodity.

A gold contract could be purchased if you wanted to speculate on the future price of gold. My position when the contract expires is either “long”, or “short”. A long contract means that I believe the price of gold will go higher, so I'm willing to give someone else money now in exchange for a promise that I'll get more money later when the contract ends. On the other hand, a short contract means that I think the price of gold will drop. I'm happy to accept the money right now in exchange of the promise that I'll make more money later.

I will receive the amount of gold in the contract, plus interest, when the contract ends. This way I have exposure to the gold's price without having to actually hold it.

Precious metals are a great investment as they are hard to counterfeit. Paper currencies can be easily faked by printing new bills. Precious metals are not easy to counterfeit. This is why precious metals have always held their value well over time.


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