JPMorgan’s forecast when the BTC bear market will end
2 min readThe global investment bank JPMorgan has predicted that the BTC bear market is likely to end. Her chief analyst described the conditions under which this would happen
When will the BTC bear market end?
JPMorgan analyst Nikolaos Panigirtzoglou shared his views on when he expects BTC’s current bear market (BTC) to end. In a recent interview with CNBC, the analyst explained that the fall in BTC prices is likely to end when the market share of the primary cryptocurrency of all cryptocurrencies climbs back above 50%. He explained:
“The healthy figure for BTC as a percentage of the total market capitalization of cryptocurrencies is 50% or more. I think this is another indicator that needs to be monitored here in terms of whether this bearish phase is over or not. ”
“Back in early April, BTC’s dominance was 60%,” said an JPMorgan analyst, adding that BTC’s relatively low market share was a negative signal, indicating that interest in BTC remained relatively subdued. However, Panigirtzoglou pointed out that BTC’s market dominance has increased in recent weeks.
BTC’s dominance is currently approximately 46% and the price of BTC is $ 34,680 at the time of writing. Although the JPMorgan analyst sees only faint signs of large investors buying BTC dip, he noted:
“The inflow into ETH funds has slowed over the last two to three weeks, while the flow into BTC funds has improved. This means that there is probably a possibility that some institutional investors have finally started buying BTC and selling other cryptocurrencies. ”
Last week, other JPMorgan analysts, Josh Younger and Veronica Mejia Bustamante, said the cryptocurrency market is recovering, even though it is not yet healthy. In addition, the short-term outlook for the crypto market is “challenging”, they added and warned against another sale.
Panigirtzoglou said earlier this month that there was an unusual development in the trend of BTC futures, the so-called backwarding, where the value of a closer futures contract – ie closer hedging (eg per month) – is therefore more expensive than longer hedging.
“We believe that this development in recent weeks has been a negative signal pointing to the bear market.”
Meanwhile, JPMorgan CEO Jamie Dimon said last month during a speech to the House Financial Services Committee on cryptocurrencies that his personal advice to the people is to stay away from BTC. However, he acknowledged that JPMorgan’s clients demanded exposure to the cryptocurrency.
What do you think about JPMorgan’s prediction?
All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
