[Bitcoin Now] Despite JP Morgan's Warning, VCs Launch 2 Trillion Won Scale Coin Fund

Grayscale Bitcoin Investment Trust Lock-Up Period Nears Expiration
Coinbit Reverses Delisting of 8 Cryptocurrencies... Some Soar Over 300x

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has recovered to the 40 million KRW range, but the major U.S. investment bank JP Morgan predicts a bearish trend. The reason is that a large volume of Bitcoin is expected to be released onto the market soon. Nevertheless, a famous U.S. venture capital firm has launched a cryptocurrency fund worth $2.2 billion (approximately 2.484 trillion KRW).

According to the domestic cryptocurrency exchange Upbit, as of 2:01 PM on the 25th, Bitcoin recorded 40.18 million KRW, up 0.21% compared to the previous day. It had dropped 10.63% in one day on the 21st, hitting 36.8 million KRW, but has since shown signs of recovery.

JP Morgan expects the bearish trend for Bitcoin to continue. According to U.S. economic media CNBC on the 24th, Nikolaos Panigirtzoglou, JP Morgan’s investment strategist, reported that the six-month lock-up period for Grayscale’s Bitcoin Investment Trust (GBTC) is about to expire. Once the mandatory holding period ends, investors can sell their Bitcoin, which could flood the market with supply. Panigirtzoglou said, “In December last year and January this year, net inflows into GBTC were $2 billion and $1.7 billion respectively,” and predicted, “A large volume of Bitcoin could be released between June and July.”

Nevertheless, the well-known U.S. venture capital firm Andreessen Horowitz has launched a cryptocurrency fund dedicated to venture companies. On the 24th, CNBC reported that Andreessen Horowitz plans to invest in cryptocurrency and blockchain startups through a $2.2 billion fund. This is twice the size of industry expectations earlier this year. Andreessen Horowitz explained, “Cryptocurrency is extremely volatile but will lead computer innovation,” and added, “We are very optimistic about the potential of cryptocurrency.”

Meanwhile, when the domestic cryptocurrency exchange Coinbit suddenly reversed its decision to delist certain cryptocurrencies, those cryptocurrencies surged more than 300 times in a single day. On the 23rd, Coinbit announced it would postpone the delisting of eight cryptocurrencies?Rex, EO, Pantheon, UP, Dex, Proto, Dexter, and Next?that had been scheduled for delisting. UP, which had fallen to as low as 0.04 KRW, surged to 13.10 KRW within four hours, an increase of about 328 times. On that day, UP was trading at 9.86 KRW. Coinbit stated that it postponed the delisting to purchase the eight cryptocurrencies scheduled for delisting from investors and exchange them for promising overseas cryptocurrencies at the same price.