The downward pressure on bitcoin's price has been curtailed as profit-taking on the Grayscale Bitcoin Trust (GBTC) has largely concluded, according to JPMorgan.

GBTC has witnessed $4.3 billion in outflows since its conversion to a spot bitcoin exchange-traded fund two weeks ago — surpassing JPMorgan's estimates of around $3 billion. Therefore, GBTC profit-taking has largely happened already, JPMorgan analysts, led by Nikolaos Panigirtzoglou, wrote in a note on Thursday.

"In turn, this would imply that most of the downward pressure on bitcoin from that channel should be largely behind us," the analysts said.

Bitcoin's price dropped more than 20% in the last two weeks following the approval of spot bitcoin ETFs in the U.S. The cashing in of profits by GBTC investors caused the decline …