JPMorgan Analyst Claims Crypto Bear Market Is Scaring Off Institutional Investors From Entering
JPMorgan Claims Bear Market Is Scaring Off Some Institutional Investors
Professional and institutional investors want to be where the money is flowing. Unfortunately, during a bear market, money is generally flowing down the trend, mostly. Because of this, the crypto market has now a lot less interest than people had in it some months ago. The information was unveiled by Nikolaos Panigirtzouglou, an analyst of the company.
According to JPMorgan Chase & Co, many institutional investors are being scared off from the crypto market now. Less financial institutions are trading Bitcoin and some “key flow metrics” are considerably down.
Investors were all entering the market last year and now some of them lost a lot of money because they bought their tokens when the prices were far too high. Even companies like CBOE Global Markets are now not really so interested in Bitcoin anymore as they were a year ago.
It is expected that the investors are not happy now. Bitcoin started the year being valued at $19,500 USD and now it is only worth $3,550 USD. The bear market has been severe and made a lot of people lose too much money. Some trauma is certainly natural. The price of BTC also pushed the altcoin price downward and tokens like Ethereum lost even more value this year.
According to JP Morgan, altcoins are getting crushed now. Many of the lesser known tokens are basically declined to a point at which mining them is not even a good idea anymore and this makes them more vulnerable and even endanger their existence.
Barry Silbert, from the Digital Currency Group, however, doesn’t believe that mining costs are the best benchmark to measure the market and how much it can be used to know its future. He sees the tokens and mining as two very separate things.
However their opinion on mining, JP Morgan considers the market to be oversold now, so if the winds change, there is a good chance that the prices might go up sharply again.
JPMorgan’s Management Does Not Like Bitcoin Too Much
While it is natural for a lot of people to be very skeptical of the future of Bitcoin now, especially the investors which have even more money to lose, it is important to notice that the CEO of JP Morgan, Jamie Dimon, openly hates Bitcoin, so it is natural that the company does not have a very positive view of it.
Dimon sees the blockchain technology as an important innovation but he despises Bitcoin openly. Bitcoin is, according to him, not the same as fiat currency. It is a bubble, not a real technology.
He even went as far as to affirm in September 2017 that he would fire any employee who was engaged in Bitcoin trading.
Crypto Evangelists, On The Other Hand, Obviously Believe That Bitcoin Will Shine In 2019
If Wall Street types are only fond of Bitcoin when it is useful for them and generally dislike it, the so-called crypto evangelists are always promising a golden future. According to people like Mike Novogratz, the former partner of Goldman Sachs which now own Galaxy Digital, a crypto fund, 2019 will be a great year with “clear new highs”.
According to him, “revolutions do not happen overnight”, so Bitcoin needs time in order to grow become a better asset. Nobody is quite sure of what will happen in 2019, but a new golden age is kind of more likely than all institutional investors going away. Hopefully, though, this new bull run is not a bubble like the one that crashed the market this year.