JPMorgan Bitcoin Analysis: Is a New Bear Market looming?

After Bitcoin’s recent rise to more than $38,000, many industry observers expect another upward move, worth more than $40,000. However, the largest US bank JPMorgan Chase does not believe this. According to their new analysis, there is even the threat of a new bear market.

Bitcoin’s Dominance is Too Low

The price of Bitcoin has fallen to just over $30,000 this week alone. However, BTC was able to hold above $30,000 and soon after showed a strong rebound. Currently, BTC is trading at $35,250, having written off a small plus of 1% for the week.

The number 1 cryptocurrency is showing signs of strength and seems poised to rise above $40,000 (as some analysts suggest). But banking giant JP Morgan is now warning: Bitcoin’s price performance over the past few weeks (backwardation) points to a bear market ahead.

They warn that the collapse of more than $50,000 worth of Bitcoin in May is “unusual” and a sign of “ weak demand for BTC by institutional investors at the moment.”

Altcoin Boom Slows Bitcoin down

Bitcoin’s dominance has fallen due to the altcoin boom, during which even the meme cryptocurrency Dogecoin (DOGE, which will be bought in Libertex, has grown by tens of thousands of percent. The dominance of Bitcoin is a value that makes it clear how large the share of PTS in the total capitalization of the cryptocurrency markets is.

At the beginning of the year, Bitcoin’s dominance was still around 70%. It has now fallen to almost 40% as traders and small investors have massively moved capital into alternative cryptocurrencies such as Dogecoin (DOGE), Solana (SOL), Cardano (ADA), Binance Coin (BNB) or Polygon (MATIC). According to JPMorgan, this is exactly the stumbling block that stopped the bullish growth: as analysts write, the dominance of Bitcoion may have to reach more than 50% again for the cryptocurrency rally to continue and Bitcoin to reach new highs.

And is it worth trusting such forecasts?

Even if you take the latest news about the adoption of Bitcoin by El Salvador as a means of payment. The International Monetary Fund (IMF) immediately reacted, seeing a lot of risks. He said he was critical of El Salvador’s Bitcoin law and called for regulatory measures.

Not only that, the IMF wants to meet with Salvadoran President Nayib Bukele soon to discuss the Bitcoin law. El Salvador may receive a program from the IMF worth almost $1 billion, and most likely in exchange for the repeal of the law on military-technical cooperation.

Source: https://news.bit.team/jpmorgan-bitcoin-analysis-is-a-new-bear-market-looming/

Official website: bit.team