Analysts from JPMorgan, the international banking giant, are pointing to an apocalyptic bear run for Bitcoin. The leading crypto asset could bite the dust at $25,000 as the Grayscale Bitcoin Trust (GBTC) is set to be unlocked, they hinted. Despite a limited BTC recovery, the strategists from JPMorgan are keeping to their prediction of the primary cryptocurrency taking to the bears.
BTC is still witnessing a very rough season. The cryptocurrency has fallen by 56 percent from mid-May till the present. This week it fell below $29k which is the lowest it has ever gone since the market began a swing down last month.
Nevertheless, Bitcoin is gradually recovering and has exceeded the $32k mark but the strategists are keeping to the view that the recovery is short-term. The woes of Bitcoin began from the controversial tweet from Elon Musk questioning its energy consumption and subsequently the outright ban on crypto activities in China.
JPMorgan’s Analysts Initial Bear Predictions On Bitcoin
This isn’t the first time the Nikolaos Panigirtzoglou-led analysis team is painting this scenario. The group firmly believes that the incoming unlocking of about 16,000 Bitcoins to the crypto market could trigger more of its volatility.
After BTC sped down from a $60k high earlier in the year to $51k, losing $9000 in three weeks, the analysts let out the alarm of doom for the crypto. Highlighting a decline in GBTC inputs, the group said that it was pertinent for Bitcoin to reclaim its $60k position if the bulls were to persist.
In the recent publication, Bloomberg reported JPMorgan Analysts saying they are “reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally”.
The group explained that the BTC’s value in a volatile comparison with Gold is seen in the $23,000 to $35,000 range in the medium term. According to them, it could assume a $25k position “before longer-term momentum would signal capitulation”.