JP Morgan: Bitcoin could fall below $ 1,260 if the bear market continues
January 25, 2019 @ 21:49 UTC
Wall Street firm JP Morgan has predicted that HODLers should expect to experience more pain if the crypto winter persists. According to JPMorgan analysts, the price of bitcoin could fall to as low as $1,260, Reuters reports. The same analysts have, however, estimated that bitcoin’s ‘cost support’ is at around the $2,400 level.
This sentiment is similar to that held by Chinese currency policy analysts, as CCN reported earlier this month. The analysts expect pessimism to dominate with regards to bitcoin in 2019. Currently, bitcoin is trading above the weekly low of $3,500 that it reached earlier this week per prices quoted by Bitfinex.
In the same report, the JPMorgan analysts also questioned the purpose of cryptocurrencies. The Wall Street firm noted that cryptocurrencies had no value in reality. Consequently, they would only make sense in a situation where investors had lost faith in the current system. On this, the JPMorgan analysts share the same sentiment as the firm’s CEO, Jamie Dimon. JP Morgan’s chief executive has previously said that he sees no actual value in bitcoin.
The JP Morgan report also added that financial institutions’ interest in the crypto markets fell in the last six months. As a result, retail investors were now dominant. This is despite the progress that has been made with regards to crypto market infrastructure. However, the analysts pointed out that with the emergence of multiple private platforms, there is unlikely to be wide usage due to lack of integration. Additionally, the JPMorgan analysts don’t see financial institutions reaping the benefits of technology any time soon. According to the analysts, it will take at least 3 to 5 years before the benefits reach the banks.
Bitcoin Could Fall Below $1,260 if the Bear Market Continues: JP Morgan Analysts, CCN, Jan 25