Analysts at JP Morgan have predicted that Bitcoin could fall below $1,260, while banks will not benefit from blockchain for at least three to five years, Reuters reported on Jan. 24.
According to Reuters, analysts from the major global investment bank think that the true value of cryptos is still unproven, and that they only make sense in a hypothetical "Dystopian" event, wherein investors have lost faith in major traditional assets like gold and the U.S. dollar.
"Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging."
JP Morgan also said that institutional involvement in the crypto market has slumped over the past six months, with individual traders making up the majority of the market.
In its crypto report, the company claimed that using crypto for payments will remain "Challenged," adding that the firm was unable to find any major retailers that accepted crypto in 2018.
JP Morgan's analysts have further suggested that Bitcoin is likely to drop to around $2,400, and could even fall below $1,260 if the current bear market persists.
At press time, the biggest cryptocurrency is trading at $3,595, down around 1.7 over the past week, according to data from CoinMarketCap.
While JP Morgan forecasted that "Widely-hyped" blockchain technology will not make any real difference for banks at least three to five years, the investment bank still concluded that distributed ledger technology has potential to cut costs for global banks and digitize various complex processes.
JPMorgan CEO Jamie Dimon is vocally critical of cryptocurrencies, including Bitcoin, which he called a "Fraud" in September 2017.
While previously stating that he does not "Really give a sh*t" about Bitcoin, he admits blockchain's potential, saying, "Blockchain is real, it's technology, but Bitcoin is not the same as a fiat currency."
JP Morgan Analysts: Bitcoin Price Could Sink Even Further, Crypto Values Unproven
Publié le Jan 24, 2019
by Cointele | Publié le Coinage
Coinage
Mentionné dans cet article
Nouvelles récentes
Voir tout
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.