Institutions have no appetite for Bitcoin at this price level: JPMorgan
Bitcoin looks to have had a great year this year—and while it’s down from its astronomical highs, it’s still up more from its lows. The digital currency has broken through yet another significant milestone in its short life, with around $15 billion in market cap. But as Bitcoin continues to attract the attention of investors, pundits and industry observers—and make its volatile journey closer to a mainstream buy—the question of whether it is still a good investment remains open.
In a new note published on Monday, JP Morgan chief strategist Marko Kolanovic stated that institutions have no appetite for Bitcoin at this price level, and that the big money is moving into the next digital gold.
If you think that institutional investors will now be looking to enter the cryptocurrency market, think again. Yesterday, JPMorgan Chase CEO Jamie Dimon said he would fire anyone who traded bitcoin, calling it a fraud that was going to blow up. And former Citigroup CEO Vikram Pandit said that he would fire anyone who bought bitcoin. So, it appears that institutional investors don’t have an appetite for Bitcoin at this price level.. Read more about bitcoin price and let us know what you think.
With the price of bitcoin (BTC) failing to stay above $35,000 yesterday, JPMorgan expects a general downward move below the critical price level, based on BTC’s volatility ratio to gold.
In a note sent to investors on Wednesday, JPMorgan underscored its view that bitcoin’s medium-term fair value is between $23,000 and $35,000. The banking giant has already presented a $140,000 roadmap if the largest cryptocurrency matches the distribution and volatility profile of gold.
But it’s not in the cards for the foreseeable future, according to a note from JPMorgan, which predicts that a complete convergence or alignment of volatility or distribution [between gold and bitcoin] is unlikely in the near future.
JPMorgan also said that China’s imposition of mining restrictions will have a positive impact on bitcoin in the medium term by accelerating the shift away from China’s high share of bitcoin mining and reducing concentration.
Few institutions are joining the hunt for MicroStrategy to buy the trap. More than a month after the cryptocurrency’s collapse on 19… May, bitcoin funds continue to bleed even as inflows into physical gold ETFs have stopped, according to JPMorgan :
This suggests that institutional investors, who typically invest through regulated vehicles such as exchange-listed bitcoin funds or CME bitcoin futures, are not yet showing much appetite for buying bitcoin indices.
Related: Bitcoin price drops below $34,000 as Grayscale’s unlock tag approaches.
Another key factor that JPMorgan believes is holding back a potential bull market is the end of a six-month lock-in period for the Grayscale Bitcoin Trust, which received nearly $4 billion in inflows in December and January. According to Cointelegraph, the 19th. July will be the day the keys are unlocked, when 16,000 BTC worth about $627 million will be released.
After hitting an all-time high in April, bitcoin has hovered between $30,000 and $40,000 in recent weeks. After being killed on the 22nd. June dropped below $29,000, with the price of BTC hovering around $34,000, according to Cointelegraph Markets Pro and TradingView.According to the Fed, the Bitcoin price is wildly manipulated by a small group of people who are no more than a handful of big Bitcoin mining companies. So if you are looking to buy or sell Bitcoins, you might want to ask the likes of JPMorgan, Goldman Sachs, or Bank of America for a real price.. Read more about when to buy bitcoin 2021 and let us know what you think.
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