JP Morgan Analyst Believes Bitcoin Price Can Keep Falling in the Near Future
Throughout 2018, Bitcoin (BTC) and virtual currencies experienced a massive drop. Bitcoin, for instance, lost more than 80% of its price, while other digital assets fell by more than 90%. Although this seems to be the end of the crypto bear market, Bitcoin could keep falling.
According to analysts at JP Morgan, Bitcoin could fall below $1,260 in the near future. Additionally, they’ve mentioned that banks are not going to be benefiting from blockchain technology at least for the next three to five years. The information was released by Reuters on January 24.
Reuters reported that analysts at JP Morgan believe that the value of virtual currencies remains unproven. These analysts mentioned there are other financial assets that could be better suited to fave a crisis such as gold. Furthermore, the investment bank explained that institutional involvement in the crypto market has also experienced a drop in the last six months.
At the same time, the firm was not able to find major retailers accepting Bitcoin in 2018, which shows that there might be some challenges ahead for Bitcoin and digital assets before they keep growing.
If the bear market keeps, Bitcoin could drop down to $2,400 or even fall below $1,260 in the future. At the time of writing, Bitcoin is being traded around $3,612 and it has a market capitalization of $63.21 billion.
Jamie Dimon, the CEO of JP Morgan has several times criticized Bitcoin and digital currencies. He said that Bitcoin is a fraud and that governments will eventually crash Bitcoin. Nevertheless, JP Morgan is working with blockchain technology and it has created a platform called Quorum.
This blockchain platform was created with the intention to connect different financial institutions and process transactions in a faster and easier way.