The most important challenges for Bitcoin have been just revealed. Check out the latest news about all this below.
It’s been just revealed that the market strategists at banking giant JPMorgan are reportedly downsizing their long-term price prediction for Bitcoin. This comes right after BTC lost 50% in just two months.
Long term price for Bitcoin
In a Business Insider report, JPMorgan analysts drastically slash their long-term price target for Bitcoin.
They are saying that BTC’s volatile boom-or-bust nature will impede its widespread adoption by blue-chip investors.
“Our previous projection that the Bitcoin to gold volatility ration will fall to around 2x later this year seems unrealistic. Our fair market value for BTC based on the volatility ratio of Bitcoin to gold of around 4x would be 1/4th of $150,000, or $38,000…”
The notes continue and say:
“The biggest challenge for Bitcoin going forwards is its volatility and the boom and bust cycles that hinder further institutional adoption.”
Back in November, when Bitcoin was trading around its all-tme high of $69,000, JPMorgan analyst Nikolaos Panigirtzoglou predicted that BTC would hit $150,000 – this was reportedly due to the fact that investors seek a hedge against inflation.
“Bitcoin’s allure as an inflation hedge has perhaps been strengthened by the failure of gold to respond in recent weeks to heightened concerns over inflation.”
Experts are now saying say that Bitcoin may see further dips as it has not yet flashed any signs that its current correction is over.
“The open interest across futures contracts and the amount of Bitcoin or ether held on exchanges, are pointing to less panicky or abrupt unwinding of positions than last May in particular with respect to larger crypto investors.”
They also said the following:
“In turn, this implies that this month’s corrections looks less like capitulation relative to last May.”
Stay tuned for more news and make sure to keep your eyes on the market.
