As Bitcoin (BTC) price failed to hold its breath above the $35,000 yesterday, JPMorgan expects an overall bearish movement below the critical price level based on the BTC-to-gold volatility ratio. 

In a note sent to investors on Wednesday, JPMorgan detailed its reasoning to see the fair value of Bitcoin between $23,000–$35,000 over the medium term. The banking giant previously pictured a $140,000 roadmap if the biggest cryptocurrency matches gold’s allocation and volatility profile.

But that’s off the table for the foreseeable future, according to JPMorgan’s note, which predicts that “full convergence or equalization of volatilities or allocations [between gold and bitcoin] is unlikely in the foreseeable future.“

JPMorgan also said that China’s crackdown on mining operations would have a positive impact on Bitcoin over the medium term, “as it accelerates a shift away from China's high share in bitcoin's hash rate, reducing concentration.”

Not many institutions are joining MicroStrategy's hunt to buy the dip. “More than a month after the May 19 crypto crash, bitcoin funds continue to bleed, even as inflows into physical gold ETFs stopped,” JPMorgan said, adding:

“This suggests that institutional investors, who tend to invest via regulated vehicles such as publicly listed bitcoin funds or CME bitcoin futures, still exhibit little appetite to buy the bitcoin dip.”

According to JPMorgan, another major factor preventing a possible bull run is the end of a six-month lock-up period for the Grayscale Bitcoin Trust fund, which saw a nearly $4 billion inflow in December and January. As Cointelegraph reported, July 19 will see the most significant single unlocking day, with 16,000 BTC worth around $627 million released.

Following the April all-time high, Bitcoin is hovering between $30,000–$40,000 for the last couple of weeks. After diving below $29,000 on June 22, BTC price is moving around $34,000, according to Cointelegraph Markets Pro and TradingView data.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Decentraland price under pressure by market turmoil, MANA points to steep correction

Decentraland (MANA) has not been able to sit back and enjoy its all-time highs printed on Thursday, above $6.0. MANA price reversed to the downside as a wave of negative news surrounding a new Covid variant hit news wires during the Asian session.

More Cryptocurrencies News

Bitcoin, Ethereum, XRP at discount ahead of Black Friday while investors fear new COVID strain

Over $265 billion wiped off the overall crypto market capitalization in a bloodbath as news of the new Covid strain breaks out. Bitcoin, Ethereum and Ripple prices have tumbled over 6%, and the top 10 cryptocurrencies are trading at a steep discount.

More Bitcoin News

XRP holds key support while indicators point to short-term recovery

Ripple started a recovery wave above a key support level of $1.024. XRP price started an upside correction as indicators suggest a short-term recovery. The coin may initiate a fresh downtrend upon a breakout of the $1.024 support level.

More Ripple News

Dogecoin-killer Shiba Inu hits 1 million holders, gets listed on South Korean exchange

Shiba Inu hit an important milestone of 1 million holders with a rise in the number of investors. The memecoin listed on a South Korean crypto exchange successfully despite strict regulatory requirements. 

More Shiba Inu News

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

BTC

ETH

XRP