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Bitcoin Dip- JP Morgan Experts Make An Omnious Prediction



4 Jun, 2021


Weakening institutional demand is expected to push the Bitcoin price below $30,000, according to JPMorgan strategists in a recent research note to clients. The report is however hopeful that the price of bitcoin could still hit $145,000 in the long term, but in the short term, the price of the cryptocurrency may still drop further, trading between 24k and 36k.

In a note sent to clients the experts at J P Morgan advice:

The fair value for bitcoin based on a volatility ratio of Bitcoin to gold of around x4 would be 1/4th of $145k or $36k. The fair value for Bitcoin based on the current volatility ratio of Bitcoin to gold of around x6 would be 1/6th of $145k or $24k. We thus see a fair value range of $24k to $36k over the medium term.

Interpreting further JPMorgan is still hopeful that it’s possible for the flagship cryptocurrency to hit $145,000 in the long term, as this is a “theoretical target” for bitcoin that assumes “a convergence of Bitcoin volatility to that of gold and an equalization of bitcoin allocations to that of gold in investor portfolios.”

Crash before Momentum

Bitcoin has dropped roughly 37% in the last 30 days but is still up 286% since the beginning of the year. JPMorgan postulated that huge institutional investors were abandoning BTC in favor of gold when the cryptocurrency hit five-month lows.

Furthermore, attempts to recover through the ceiling have been weakened by regulatory action from China, crypto-tax laws in the US, and tweet wars from Dogefather, Elon Musk.

JPMorgan’s analysts believe that “full convergence or equalization of volatilities or allocations is unlikely in the foreseeable future,” as long term signals remain “problematic.” BTC would have to drop to $26,000 “before longer-term momentum would signal capitulation.”

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