JPMorgan Chase has launched an investor observe stating that the cryptocurrency market seems “to be starting the method of therapeutic.” Within the quick time period, nonetheless, the JPMorgan analysts count on additional sell-offs earlier than capitulation.
JPMorgan’s Crypto Market Outlook
JPMorgan Chase’s analysts, together with Josh Youthful and Veronica Mejia Bustamante, wrote concerning the outlook of the cryptocurrency market in a observe revealed Friday.
They defined that the near-term outlook for the crypto market is “difficult,” noting that blockchain knowledge suggests latest cryptocurrency sell-offs had been made to cowl losses. “There’s doubtless nonetheless an overhang of underwater positions which must be cleared by way of the market,” they detailed.
The analysts additionally warned of the potential of elevated manufacturing prices of BTC as China’s crackdown pushes bitcoin mining overseas. Nonetheless, the JPMorgan analysts see stability within the bitcoin futures market as a optimistic issue. They concluded:
Cryptocurrency market exhibits indicators that it isn’t but wholesome, [but] it does additionally seem like starting the method of therapeutic.
Final week, a distinct JPMorgan analyst, Nikolaos Panigirtzoglou, wrote that regardless of the latest correction, “we’re reluctant to desert our damaging outlook for bitcoin and crypto markets extra typically.” He emphasised, “Regardless of some enchancment, our indicators stay general bearish.”
Panigirtzoglou added that bitcoin’s truthful worth, derived from evaluating its volatility to gold, is in a spread of $23,000 to $35,000 within the medium time period. He elaborated:
It might nonetheless take value declines to the $25,000 stage earlier than longer-term momentum would sign capitulation.
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