Analytics / Forex and Crypto News
While the price of Bitcoin fluctuates within the range of 33000-40000, analysts argue about its future direction. Fundstrat analysts believe that the Bitcoin price has completed its correction and will soon reach $50000. They back up their predictions with a price chart.
However, JPMorgan analysts, on the contrary, predict a continuation of the bearish movement. They believe that the price has not yet reached its bottom. In their opinion, the price bottom is located in the area of $24000. However, in the medium term, they predict Bitcoin price movement below $36000.
They argue their forecast with a sharp decline in institutional interest. JPMorgan experts talk about a decrease in institutional demand after the Bitcoin price crash in May. After the price dropped by 40%, the institutions redefined their views on Bitcoin.
Such a sharp and strong decline in the price of Bitcoin does not allow it quickly recover and start new growth. The recovery phase will take some time.
Compared to gold, Bitcoin is a more volatile and less predictable asset. In this situation, institutions are likely to prefer to keep their capital in precious metal rather than digital currency.
Moreover, gold is trading at the highest level in the past five months. The price of an ounce of gold rose to $1900 on June 1.
Investment bank JPMorgan has released a report on the state of the cryptocurrency market in the second quarter of 2021. The report noted that as a result of a sharp decline in the price of cryptocurrencies in April and May of this year, institutional investors began to massively sell Bitcoins