Are they trying to drive the price of Bitcoin down, and then buy the dip?
Many in the crypto community allege that these big financial institutions push messages like this in order to induce fear, trigger a sell-off, and then buy the dip.
According to JP Morgan analysts, institutional investors are leaving Bitcoin and pouring money into Ethereum, the analysts cite much higher demand as the reason.
I invest in both, but favor Ethereum myself due to the many different applications, and use cases inherent in a platform like Ethereum.
Bitcoin is a currency, but Ethereum is an entire cosmos.
It doesn’t take an economist to realize that increased network demand and use cases usually bode well for the price of a digital asset.
Here’s more on what JP Morgan analysts had to say:
>> JP Morgan reportedly said in its investor note that the interest in Ethereum futures points to much a “healthier demand for Ethereum vs. Bitcoin by institutional investors”
Significant pivot of interest. 🧐https://t.co/91sbvK30Js
— Erick de Moura (@erickdemoura) September 24, 2021
Institutional Investors Are piling Into Ethereum, leaving Bitcoin: JPMorgan pic.twitter.com/vpxkMHwXMr
— Steve Burns (@SJosephBurns) September 24, 2021
Decrypt cites JP Morgan’s reasoning:
Investment bank JP Morgan said Wednesday that investors are looking to Ethereum futures instead of Bitcoin futures—meaning there’s now more interest in the second biggest cryptocurrency among major investors, according to reports.
This pivot in interest is a “setback for Bitcoin,” according to a Thursday Business Insider report citing a note from the bank. Bitcoin futures on the Chicago Mercantile Exchange’s (CME) traded below the price of Bitcoin this month, the report noted.
— BITNΞWSBOT. (@bitnewsbot) September 26, 2021
JP Morgan analysts are claiming that institutional investors are leaving Bitcoin and flocking to Ethereum. Utility is an excellent reason to believe that Ethereum will probably overtake Bitcoin at some point. First movers rarely maintain the hill. #Bitcoin #Ethereum #JPMorgan
— Vince Quill (@VinceQuill) September 27, 2021
News BTC had more details:
Last week, a JPMorgan analyst had pointed out that at its current price, Ethereum is currently overvalued. The analyst put the digital asset’s value at $1,500, about 55% less than its current trading range. But it seems that despite this low fair valuation, ETH is still beating out top coin bitcoin for big money coming into the market. Ethereum has also held up better in the face of recent market crashes.
While bitcoin futures prices have dropped below the asset’s trading price, Ethereum futures have risen relative to the asset’s market price. Reports show that between the months of August and September, the price of Ethereum futures has risen 1% over the actual price of Ethereum. “This points to much healthier demand for Ethereum versus Bitcoin by institutional investors,” said the analysts.
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