Global investment bank JPMorgan has foreseen that the bitcoin price slump can probably be over once the cryptocurrency’s dominance rises back on top of 50% . “I assume that’s another indicator to look at here in terms of whether or not this bear part is over or not,” the firm’s analyst explained.
JPMorgan’s Bitcoin Market Prediction
JPMorgan analyst Nikolaos Panigirtzoglou has shared his view of when he thinks this bitcoin securities industry will be over. In an interview with CNBC on Tuesday, the analyst explained that the bitcoin price slump can probably finish once the cryptocurrency’s market share of all cryptocurrencies climbs back on top of 50%. He explained:
“A healthy range there, in terms of the share of bitcoin as a share of the entire cryptocurrency market cap, is 50% or more. I feel that’s another indicator to look at here in terms of whether or not this bear part is over or not.”
“It was like 60% back within the starting of April,” the JPMorgan analyst recalled, adding that bitcoin’s comparatively low market share was a negative signal that means interest in BTC remains comparatively subdued. However, Panigirtzoglou recognized that bitcoin’s market share had increased in recent weeks.
Bitcoin’s dominance is presently almost 46% and BTC’s price stands at $34,609 at the time of writing, supported by information from Bitcoin.com Markets.
While the JPMorgan analyst sees very little sign of huge investors shopping for the dip in bitcoin, he noted:
“The flow into ethereum funds has slowed over the past 2 to a few weeks, at an equivalent time because the flow into bitcoin funds … has improved. which means there’s maybe a relative value opportunity that some institutional investors are looking to buy for bitcoin and sell different cryptocurrencies.”
Last week, another JPMorgan analyst said that the crypto market is healing although it’s not nevertheless healthy. Moreover, the near-term outlook for the crypto market is “challenging,” the analyst warned of additional sell-offs.
Panigirtzoglou said earlier this month that there was “an unusual development” within the bitcoin futures trend. “We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market,” he wrote.
Meanwhile, JPMorgan’s business executive, Jamie Dimon, said last month throughout his congressional testimony before the House of Financial Services Committee relating to cryptocurrency that his personal recommendation to folks is to remain off bitcoin. Yet, he acknowledged that JPMorgan’s clients want exposure to the cryptocurrency.