The past six weeks have been one of the worst periods in Bitcoin’s history. Despite the fact that Bitcoin, the world’s most valuable cryptocurrency, has only been around for 12 years, it has seen its fair share of gloomy days and dramatic price swings.
However, according to a new report from financial giant JPMorgan Chase, it looks like the price of bitcoin, which has been plummeting in recent weeks, could fall further before stabilizing.
After one of the toughest periods for bitcoin since its creation 12 years ago, the asset’s price finally peaked in mid-April at about $64,000, its highest point in history.
This is despite the fact that Bitcoin, the world’s most valuable cryptocurrency by market capitalization, has fallen by about $30,000 since then. Far worse than Bitcoin’s performance in 2014 and 2018, two years of poor performance that are still fresh in traders’ minds.
A research note by JPMorgan strategist Nikolaos Panigirtzoglou, reported by CNBC and Yahoo Finance, noted that bitcoin’s price could fall further after a pullback before stabilizing.
“It seems unlikely that we will see volatility return to last summer’s x2 levels now. Our best expectation for the medium term is for volatility to partially recover from its current level of around x6 to around x4 by the end of the year,”
Bitcoin’s price has been volatile since its plunge in May, when it fell from a high of nearly $64,000 to a low of $30,000.
Bitcoin is the world’s largest cryptocurrency by market capitalization, with a mid-term value of $24,000 to $36,000, according to the report.
One of the reasons JPMorgan believes bitcoin could fall further is that major institutions have suspended buying bitcoin. As long as bitcoin continues to fall, large-scale investors will avoid it like the plague.
The report elaborates, “There is no doubt that the boom and bust of the past few weeks represents a regression in the institutional adoption of crypto markets (especially bitcoin and ethereum). We note that rising volatility, particularly relative to gold, is an obstacle to further institutional adoption as it reduces the attractiveness of digital gold relative to traditional gold in institutional portfolios.”
According to the report, JPMorgan said that volatility is likely to continue throughout 2021 and that the situation is only likely to improve slightly before the year ends.
In contrast, however, Bloomberg is bullish on bitcoin, and as usual, seasoned market professionals are urging investors to take a longer-term view of bitcoin.
Veteran trader Peter Brandt predicts that the ultimate floor for BTC/USD will be $21,000 under current conditions.
“Why would anyone get out of a non-leveraged long position when the market is already in an 80% worst-case scenario?” He noted earlier in the week.
Another overtly bullish view comes from Bloomberg Intelligence, which called cryptocurrencies “discounted and renewed” in its latest monthly report.
It concludes, “Bitcoin is more likely to recover to the $100,000 resistance level than to remain below $20,000.”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/why-jpmorgan-and-bloomberg-are-opposite-on-bitcoins-future-movements/
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