In a recent report, JPMorgan Chase & Co. predicted that the upcoming Bitcoin crash will happen around 4Q 2021, according to an investor note seen by CNBC.
Bitcoin may be the leader in the cryptocurrency movement, but it’s not the only one, and it might not be the best for everyone, according to a recent report from JPMorgan Chase.
Cryptocurrencies have enjoyed a roller coaster ride so far in 2018, with the total market cap of all digital assets up by over 48% from a year ago. At this rate, 2018 will end up being the fourth year in a row where the total market cap of digital assets has grown by at least 60%. That growth has been driven by Bitcoin, which has climbed over 500% year to date.. Read more about bitcoin price and let us know what you think.Summary of the situation – JPMorgan thinks bitcoin could crash like it did in 2018. – China’s regulations on btc mining are affecting the crypto currency market. US financial services firm JPMorgan predicts bitcoin will continue to plummet. The finance team, led by Nikolaos Panigirtzoglu, believes there is little demand for cryptocurrencies. Panigirtzgoglu believes that no real token player has emerged, so his price will remain. As JPMorgan notes, the bitcoin futures curve is at a backwardation level. This level indicates that the cryptocurrency has the highest spot price for futures. Futures contracts for BTC and other cryptocurrencies assume that the buyer will hold the tokens at a fixed price. Therefore, the buyer must set an exact payment date for the token in order to make a profit.
JPMorgan is concerned about the price of bitcoin
For cryptocurrency-based financial firms like JPMorgan, seeing bitcoin collapse is alarming. Strategists remember the cryptocurrency crash of 2018 that impacted futures. BTC’s losses have been staggered, with the crypto currency falling first at the speculative level and then at the contract level. In 2018, the cryptocurrency had lost more than 80% of its value after reaching an all-time high. JPMorgan estimates that this could happen again in 2021. These predictions are based on the idea that institutional traders are no longer attracted to investing in cryptocurrencies. The financial firm also bases its findings on the 21-day average of bitcoin futures versus cash value.
Regulation of cryptocurrencies
The finance team also believes that regulation is one of the reasons why bitcoin is losing momentum. The almost daily crackdown on cryptocurrencies has more to do with hype than government action. However, authorities are trying to introduce new rules for cryptocurrencies. Last week, for example, Gary Gensler, chairman of the Securities and Exchange Commission, called for better protection for cryptocurrency investors. Gensler said the cryptocurrency market has new weaknesses in investor protection that need to be addressed. China also plays an important role in the regulatory system, especially with regard to btc mining in the region. This is because the country is trying to be more environmentally friendly economically and leave cryptocurrencies behind. Earlier, the country’s government had banned trading of cryptocurrencies at the corporate level and imposed sanctions on social media platforms that talked about cryptocurrencies. Following China’s declaration against btc mining in its region, other countries expressed support and acted in a similar manner. However, other governments, such as El Salvador, have expressed support for BTC and its production. Cryptocurrency miners need not worry about these apparent failures in China, as there are other countries they can work with. For example, Iran has very cheap energy that can be used by miners. There are also countries like Kazakhstan and the United States where BTC can be mined without breaking the law.The bear market in bitcoin continues. CNBC is reporting that JP Morgan is now predicting that Bitcoin will not be able to recover till 2021 – after three years of crashing prices. In fact, the bank has even started long-term positive price predictions for Bitcoin, which is an interesting development. JP Morgan is known for being highly conservative, but this is a rare exception.. Read more about jamie dimon bitcoin and let us know what you think.
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