JPMorgan‘s latest research paper has been published. Although last month’s note said that “it could reach $146,000” for Bitcoin, this month’s fair value is between $24,000 and $36,000.

It was one of the worst months in history for Bitcoin

May 2021 was Bitcoin’s worst-performing month since 2011, but an analyst from US bank JP Morgan believes the asset may trend lower in the medium term.

JP Morgan strategist and digital asset expert Nikolaos Panigirtzoglo made some warnings to Bitcoin holders.

The claim that “BTC can fall as low as 26 thousand dollars”

In his research note to investors, the expert wrote that Bitcoin needs to drop to $26,000 to signal retail capitulation before starting a new rise. According to the analyst, the current fair value of Bitcoin is between $24,000 and $36,000.

We’ve seen more volatility over the past few weeks, linked to a waning institutional interest in Bitcoin. Panigirtzoglo added that the May crash damaged its image in the eyes of many institutional investors, who began to doubt Bitcoin’s potential as a store of value.

The expert strategist said:

“There is no doubt that the bullish and bearish dynamics of the past weeks represent a setback in the crypto market and institutional adoption of Bitcoin and Ethereum in particular. We see that the mere increase in volatility, especially compared to gold, is a barrier to further increase in corporate adoption as digital gold reduces the attractiveness of digital gold compared to traditional gold in institutional portfolios.”

They raised their price target in April.

The analyst praised Bitcoin’s low volatility in April and said he was aiming for a price of $146,000. However, with the recent market decline, it seems that the analyst has changed his medium-term outlook on the digital asset. He argues that now that Bitcoin’s downward volatility is back, institutions are unlikely to turn to Bitcoin as a store of value and a hedge against inflation.

Legendary trader Peter Brandt also said that another collapse is possible.

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