JP Morgan Says Crypto Market Is Healing, Expects More Price Decline Before Capitulation
The assessment stated that the crypto money was recovering above the level of 30 thousand dollars. It was also commented that the increasing cost of Bitcoin production with the steps of China and the futures markets gave positive signals for a price increase.
According to JPMorgan, the anticipated sale of shares in a significant Bitcoin fund between June and July will be a new source of pressure on the world’s largest-volume cryptocurrency. While the downward trend in Bitcoin continues as a result of last month’s sales and price dynamics, according to the report written by JPMorgan strategist Nikolaos Panigirtzoglou, the downward trend in Bitcoin will continue due to the forecasts for the share sales of the market giant Grayscale Bitcoin Trust, a Bitcoin fund.
According to Bloomberg’s news, JPMorgan’s strategists said in a statement that despite this week’s recovery, they are reluctant to abandon their negative outlook for Bitcoin and the crypto market, and their signals are generally bearish.
Strategists also wrote that the fair value of Bitcoin, based on a comparison of its volatility to gold, is in the range of $23,000 to $35,000 over the medium term. However, Bitcoin has fallen below the critical $30,000 level after China’s moves to ban cryptocurrencies. Today, the currency has seen a total decrease of approximately 50 percent after the record level of $ 60,000 in April.