• bitcoinBitcoin$36,188.00-4.06%
  • ethereumEthereum$2,257.94-2.14%
  • ElrondElrond$80.82-1.58%

JPMorgan Doesn’t Predict Great Things for Bitcoin in 2021

Bitcoin was created 12 years ago, but it seems that now it reached its toughest moment yet. The King of Crypto reached a new ATH in mid-April of $64,000 but after that, the biggest digital currency by market cap has fallen to $30,000. This is actually worse than the Bitcoin events of 2014 and 2018, two years that any trader remembers.

Nikolaos Panigirtzoglou, a strategist at JPMorgan, declared in a research note that the price of Bitcoin may actually fall again before stabilizing after a correction.

“It now seems unlikely that we see this volatility ratio returning to the x2 levels of last summer. The best we can hope for over the medium term is for this volatility ratio to partially revert from around x6 currently to around x4 by year-end,” commented Panigirtzoglou.

The price of Bitcoin has remained volatile since it fell in May. The note published by Panigirtzoglou mentions that Bitcoin has a medium-term fair value of $24,000 to $36,000.

One of the main reasons for which JPMorgan predicts that Bitcoin could continue to fall is the fact that institutions have stopped buying the asset – for now. So if the price continues to fall, largescale investors will continue to avoid it.

“There is little doubt that the boom-and-bust dynamics of the past weeks represent a setback to the institutional adoption of crypto markets, particularly bitcoin and Ethereum. We note that the mere rise in volatility, especially relative to gold, is an impediment to further institutional adoption as it reduces the attractiveness of digital gold vs. traditional gold in institutional portfolios.”

The report mentions that the volatility will probably stay here for 2021 and that we’ll finally see some good results around the last months of the year.

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