JP Morgan Analysts: Bitcoin to tumble below $1,260: Crypto value remains unproven
|- The blockchain technology will not benefit the banking industry in the coming three to five years.
- Bitcoin is likely to slide to $2,400 while a drop below $1,260 is a possibility.
The analysts from one of the leading investment banks in the United States, JP Morgan are reported to have predicted that Bitcoin (BTC) is likely to plunge to lows below $1,260. The analysts went ahead to say that the blockchain technology will not benefit the banking industry in the coming three to five years according to a reported published by Reuters on January 24.
JP Morgan analysts say that the value of digital assets is yet to be proven and that current the make logic only in a hypothetical “dystopian” event. Importantly, investors have lost confidence in other traditional assets, for example, gold and the U.S. dollar. A section of the report reads:
“Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging [than cryptocurrencies].”
The analysts reckoned that institutional clients’ involvement in the crypto market has greatly thinned in the last six months. The market is dominated by individual traders. Moreover, crypto as a payment method will continue to face challenges owing to the fact that the bank was unable to find banks that take cryptos for payment in 2018.
The analysts said that Bitcoin is likely to slide to $2,400 while a drop below $1,260 is a possibility especially if the ongoing bear trend in the market fails to reverse. At the time of press, Bitcoin is exchanging hands at $3,556 following a 0.37% loss on the day.
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