JPMORGAN ANALYSTS EXPECT TEMPORARY CRYPTO REBOUND
— Crypto Town Hall (@Crypto_TownHall) July 21, 2024
According to JPMorgan analysts, any imminent rise in crypto prices will be short-lived, driven by strategic liquidations.
They noted bitcoin's high current price relative to its production cost and compared it to gold's… pic.twitter.com/khK1JUUTP3
A
A
Bitcoin in Decline: What If JP Morgan Analysts Were Correct?
Thu 25 Jul 2024 ▪
3
min read ▪ by
Getting informed
▪
Trading
Bitcoin is undergoing a correction after briefly breaking the $68,000 mark. JP Morgan analysts, however, predict a persistent downward trend. This forecast raises questions about the trajectory of the crypto asset’s price.
![Observers of the bitcoin market](https://www.cointribune.com/app/uploads/2024/07/Sinapi-31-1024x683.png)
JP Morgan and the recent movements of Bitcoin
On July 21st, Bitcoin briefly increased, reaching $68,000 before dropping back to around $67,000. This rise followed the announcement of Joe Biden’s withdrawal from the Democratic primary race. Despite the enthusiasm of investors hoping to see BTC exceed $70,000, JP Morgan analysts expressed reservations.
According to them, the price of the crypto asset is too high compared to its production cost, estimated at around $43,000. They suggest its value adjusted for volatility should be around $53,000. This analysis indicates a possible return to a lower value, limiting long-term gains. Currently, BTC trades below $66,000, showing a downward trend that seems to confirm the analysts’ forecasts.
Peter Brandt’s vision and trends to watch
Other experts, like trader Peter Brandt, share a divergent view. Brandt acknowledges a short-term bearish trend but sees long-term growth potential. This optimism is supported by the growing interest in Bitcoin ETFs, which attracted more than a billion dollars in capital last week, according to Bloomberg. This trend shows a renewed interest from institutional investors, a positive sign for the future of Bitcoin.
Moreover, the potential re-election of Donald Trump in November 2024 is seen by some as a possible catalyst for crypto. This is due to his supposedly favorable stance towards the sector. Additionally, rumors are circulating about a possible announcement at the Bitcoin conference in Nashville, where Trump could declare Bitcoin as a strategic reserve asset.
In summary, the crypto market is currently marked by great uncertainty, with varied perspectives depending on the analysts. While JP Morgan envisions a continued short-term decline, other experts see long-term growth potential. Investors must therefore stay alert to market developments and political events, keeping in mind the inherent risks of this volatile sector.
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
A
A
Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.