The bitcoin bear market appears to be lasting forever, and according to a new report from JPMorgan, it is going to take quite a bit of effort to pull the crypto space out of its present slump. JPMorgan On What Needs to Happen to Bring BTC Back Up Bitcoin has been down for the count for the past several months. The world’s number one digital currency by market cap hit a real snag about three months ago when it struck a new all-time high of ,000 per unit. This may have seemed exciting, but analysts were not expecting this move to cause bitcoin to begin a series of dips that have now lasted more than 90 days. The currency, at the time of writing, is trading for about half that original price, and bitcoin has lost 50 percent of its value. JPMorgan is regularly looking
Topics:
Nick Marinoff considers the following as important: Bitcoin, Bitcoin News, Institutions, jpmorgan, News
This could be interesting, too:
Chayanika Deka writes Taiwan’s Financial Watchdog Prepares to Test Crypto Custody Services with Local Banks
Temitope Olatunji writes X Empire Unveils ‘Chill Phase’ Update: Community to Benefit from Expanded Tokenomics
Bhushan Akolkar writes Cardano Investors Continue to Be Hopeful despite 11% ADA Price Drop
Bena Ilyas writes Stablecoin Transactions Constitute 43% of Sub-Saharan Africa’s Volume
The bitcoin bear market appears to be lasting forever, and according to a new report from JPMorgan, it is going to take quite a bit of effort to pull the crypto space out of its present slump.
JPMorgan On What Needs to Happen to Bring BTC Back Up
Bitcoin has been down for the count for the past several months. The world’s number one digital currency by market cap hit a real snag about three months ago when it struck a new all-time high of $64,000 per unit. This may have seemed exciting, but analysts were not expecting this move to cause bitcoin to begin a series of dips that have now lasted more than 90 days. The currency, at the time of writing, is trading for about half that original price, and bitcoin has lost 50 percent of its value.
JPMorgan is regularly looking for signs that the bear market is coming to an end, though the bank says these signs have not yet shown up. One of the big things that needs to happen if bitcoin is to get out of its present condition is that it needs to account for approximately 50 percent of the overall crypto space, and while it remains close, that number has fallen in recent weeks.
In the report, JPMorgan explains:
We believe that the share of bitcoin in the total crypto market would have to normalize further and perhaps rise above 50 percent (as it did previously towards the end of 2018) to be more comfortable in arguing that the currency bear market is behind us.
At press time, bitcoin’s valuation in the market presently stands at approximately 46 percent, though earlier in the year, this number was a whopping 70 percent.
One of the other things – according to the report – that needs to happen if bitcoin is to recover soon is that institutions need to show more interest in the digital currency. There was a time when most institutions appeared to be flocking to bitcoin the way farm animals flock to hay bales. The asset appeared new, contemporary, and the envy of all intelligent investors. Firms such as Tesla and Square were buying up the asset like there was no tomorrow.
However, in recent days, this attitude of bitcoin love has diminished heavily amongst well-to-do trading enterprises, and JPMorgan is adamant that bitcoin needs to again attract institutions if it is to ever experience jumps like it did early in the year. Right now, firms such as Ark Invest and MicroStrategy continue to throw money into the digital currency, but at the end of the day, these are two companies amongst thousands, and two entities are not likely to do as much good as 100.
Institutions Must Come Back
The report says:
These institutional announcements are far from encouraging as they do not reflect new entrants.