The driving pressure behind the latest sell-off in bitcoin could have run its course, based on JPMorgan. Bitcoin rallied in the second half of 2023 as optimism round the approval of change traded funds grew, however their debut earlier this month has confirmed to be a “promote the information” occasion for the world’s largest cryptocurrency. Bitcoin briefly traded above $49,000 shortly earlier than the funds launched, however then fell greater than 20% earlier than seeming to stabilize round $40,000. BTC.CM= YTD mountain Bitcoin has retreated since the approval of bitcoin ETFs. JPMorgan strategist Nikolaos Panigirtzoglou stated in a word to purchasers Thursday that the primary supply of the promoting has come from the Grayscale Bitcoin Belief (GBTC) . The fund, which traded at a steep low cost as an over-the-counter product earlier than buyers turned assured {that a} conversion to an ETF would occur, has seen heavy outflows over the previous two weeks. “Revenue-taking on earlier GBTC investments, made at a reduction to [net asset value] final 12 months, has seemingly been a significant driver behind bitcoin’s correction; $4.3bn has up to now exited GBTC since its conversion to ETF,” Panigirtzoglou stated. Some outflows from GBTC have been anticipated, given the prior low cost and its excessive price relative to different bitcoin ETFs. Panigirtzoglou, who had estimated $3 billion of outflows, stated that the decline is seemingly revenue taking relatively than an indication that the money is transferring to different choices, and that the outflows ought to sluggish from right here. “We conclude that GBTC revenue taking has largely occurred already. In flip, this might suggest that almost all of the downward stress on bitcoin from that channel ought to be largely behind us,” Panigirtzoglou stated. Even with the outflows from GBTC, the fund nonetheless has about $20 billion in belongings below administration. And a few of the different bitcoin ETFs are seeing massive inflows, with funds from iShares ( IBIT ) and Constancy Sensible Origin ( FBTC ) each surpassing $1 billion in inflows. The entire inflows and decline in worth of bitcoin have missed the optimistic estimates of some crypto bulls, however the greenback quantities are nonetheless giant in comparison with different ETF launches.