07.03.202110:54 Forex Analysis & Reviews: JP Morgan: the demand for bitcoin among institutional investors has started to grow

In previous articles, we have already said that the support of $ 44,000 per coin is extremely important for bitcoin. At the moment, we can say that this support has kept the cryptocurrency from falling again, which means that the upward trend continues. At the time of writing, the price of one coin is $ 50,500. Thus, buyers are pushing again, so the probability of new growth to the absolute highs of the value of bitcoin is growing. And the main supplier of interesting fundamental information in recent years is JP Morgan, a large financial holding company. At the same time, the information that comes from the holdings experts often contradicts each other. Previously, there was information that BTC is not very popular among institutional investors. Even earlier, there was information that JP Morgan analysts consider bitcoin a very volatile instrument and do not advise their clients to invest large amounts in cryptocurrency. But at the same time, they allow investments in the amount of 1% of the portfolio. The latest information says that the bank has seen an increase in demand for the "cue ball" among institutional investors. However, it is not reported how high this increase is. However, the head of research, Joyce Chan, believes that institutions are increasing their interest in BTC. However, Chan is very concerned about the fact that the capitalization of the first cryptocurrency has grown by $ 700 billion over the past 5 months, with capital inflows of only about $ 11 billion. Ms. Chan believes that the demand for alternative investment tools will increase, however, she believes that bitcoin is not an effective hedging tool. "Financial technology is becoming mainstream after this pandemic," Chan said. Thus, if we put all the available information together, it turns out that the demand among the institutions is still growing, but rather a little. However, for the long-term growth of the value of bitcoin, this is exactly what is needed. The question is not even how many new investors will come to bitcoin over time. The question is how large investors will treat the "cue ball" itself in the first place. If for them it is the same means of investment as for small traders, then sooner or later bitcoin is waiting for a new collapse. It is large investors who will set the tone for bitcoin trading in the future.

On the daily timeframe, we can see that the price has adjusted by 61.8% in Fibonacci after falling from 58.5 thousand per coin. However, the upward movement on Sunday gives reason to assume that after all, most traders are inclined to new purchases of the "cue ball", and not to its sales. After the rebound from the 61.8% Fibonacci level, the price could not go below the mark of $ 47,000, so a new test of the area of $ 43,000 - $ 44,000 did not occur.