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
Bitcoin in Decline: What If JP Morgan Analysts Were Correct?
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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.
17h ago•
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