Analysts at JPMorgan investment bank have made an important conclusion about the prospects of bitcoin. They attribute the future growth of the asset to an increase in Strategy's dollar reserves. Experts also called the inflow of capital into futures contracts a positive signal. In recent weeks, flows to spot exchange-traded funds have remained extremely volatile. For example, on July 14th, the net inflow into these products amounted to 181 million dollars. However, a day earlier, there was a sharp outflow of funds in the amount of $ 425 million. At the same time, investments in funds with leverage tied to Strategy shares remained positive. This trend has been going on for seven weeks in a row. Experts attribute such activity mainly to retail investors. At the same time, the inflow of capital into futures on the Chicago Mercantile Exchange indicates the interest of institutional participants.

Another important factor was the noticeable growth of Strategy's dollar reserve. Recently, this stock has increased from 2.55 billion to 3 billion dollars. In its financial statements, the company confirmed the exact purpose of these funds. The money is intended to pay dividends on preferred shares and interest on debt. According to JPMorgan analysts, the current stock will be enough for about twenty months of such payments. Earlier, the bank's specialists recommended that the company form a reserve for a period of 24 to 36 months. In their opinion, such a step would significantly reduce the likelihood of a forced sale of bitcoins. The company could have avoided selling off assets to service its financial obligations. However, analysts acknowledged that it is still difficult to establish a direct link between the increase in inventory and investor sentiment.

As of July 12th, Strategy owned 843,775 bitcoins. She acquired this volume for $63.69 billion at an average price of $75,476 per coin. Over the past week, the company has raised $466.7 million through the sale of its shares. At the same time, she did not buy or sell the cryptocurrency itself. In early July, JPMorgan criticized Strategy's Bitcoin reserve monetization program. This scheme allows the company to sell cryptocurrencies to replenish its dollar reserves. The funds are also used to pay dividends and service debt. Earlier, Ripple CEO Brad Garlinghouse also expressed his opinion. He called the Strategy model harmful for the entire cryptocurrency market. According to him, financing digital gold purchases through the issue of preferred shares creates systemic risks.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.