JPMorgan strategists oppose the main cryptocurrency and cryptoanalysts believe bitcoin price will continue to decline
JPMorgan strategists oppose the main cryptocurrency
JPMorgan strategists opposed the first cryptocurrency as an alternative to gold. In their opinion, the presence of BTC will not affect the preservation of the reliability of the investment portfolio during a market crash.
According to JPMorgan analysts John Normand and Federico Manicardi, bitcoin is “the least reliable hedging instrument in times of severe market stress.”
Experts believe that large investors from Wall Street are driving the BTC rate. Analysts noted that Bitcoin’s rise in popularity among retail investors correlates with cyclical assets.
“The mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage. If sustained, this development could erode diversification value over time,” the strategists added.
Cryptoanalysts believe bitcoin price will continue to decline
The main cryptocoin fell in price by 25% in 14 days. According to Coinmarketcap, the price of BTC at the time of writing was $32,504. Bitcoin price previously fell below $29,000.
Anton Kravchenko, CEO of Xena Financial Systems, believes that the value of BTC may significantly decrease. He called the growth of the coin rate over the last time “manic”. The expert is also sure that you can think about buying bitcoin only if it falls to at least $15,000.
Currency.com financial analyst Mikhail Karkhalev believes that the BTC rate may drop to $28,000, and then to $24,000. The expert does not rule out a decrease to $20,000, but he is sure that from this level the cost of the first crypto-coin “will quickly fly up”.
“The main thing now is not to panic, but to calmly wait out the correction,” Karkhalev urged.
The outlook for this year is still optimistic due to the growing interest in cryptocurrencies from institutional investors. But, the analyst believes, their activity will affect the entire cryptoindustry — there will not be such a sharp and rapid growth as before, it will be of a phased nature.