Another news article from the world of cryptocurrency with predictions. This time they came from JP Morgan Chase. In my opinion, this is not the best way to give people price predictions for assets that have so much volatility. But they continue to do so,\u00a0 at least, we can check what their predictions are based on … \ud83d\ude42<\/p>\n
\nThe vertiginous rise that the\u00a0price of Bitcoin experienced<\/b>\u00a0in December and early January, made many investors pin their hopes on the\u00a0cryptocurrency<\/b>\u00a0. However, analysts at the financial\u00a0JP Morgan Chase<\/b>\u00a0doubt that the electronic currency can be traded above\u00a0$ 40,000 again<\/b>\u00a0.<\/p>\n
On January 7,\u00a0Bitcoin broke the barrier of\u00a0$ 40,000<\/b>\u00a0, and in the following days it cost up to\u00a0$ 42,000<\/b>\u00a0. In this context,\u00a0JP Morgan<\/b>\u00a0specialists projected that the cryptocurrency\u00a0could reach $ 146,000 per unit\u00a0and would compete with gold.<\/p>\n
Of course, the world of\u00a0cryptocurrencies<\/b>\u00a0is a roller coaster. Just a few days after the prediction, on January 11,\u00a0Bitcoin (BTC) fell below $ 30,000\u00a0. Since then, the digital currency has been oscillating between\u00a0$ 31,000 and $ 35,000<\/b>\u00a0, with dfe peaks up to\u00a0$ 39,000<\/b>\u00a0, but until there.<\/p>\n
Why has Bitcoin not recovered?<\/b><\/h2>\n
Faced with this scenario, the\u00a0JP Morgan<\/b>\u00a0team of strategists greatly lowered their expectations for\u00a0Bitcoin<\/b>\u00a0. According to new estimates,\u00a0weak demand<\/b>\u00a0and the possibility of investors\u00a0withdrawing their profits<\/b>\u00a0, prevents\u00a0BTC from<\/b>\u00a0returning to the values of two weeks ago.<\/p>\n
Analysts believe that the flow of institutional resources to\u00a0Grayscale Bitcoin Trust<\/b>\u00a0, a financial product that allows investing in cryptocurrencies,\u00a0“is not strong enough for Bitcoin to exceed $ 40,000<\/i>\u00a0,” they say in a report cited by\u00a0Bloomberg .<\/p>\n
“The short-term risk balance is still down,” they<\/i>\u00a0warned from\u00a0JP Morgan<\/b>\u00a0.<\/p>\n
According metrics Glassnode, cited by\u00a0Criptonoticias\u00a0, the\u00a0BTC<\/b>\u00a0is experiencing greater\u00a0liquidity depletion<\/b>\u00a0for years. This is partly because funds are being withdrawn from exchanges, but also because cryptocurrencies are continually moving towards the ‘hodlers’. He adds that only in the last 30 days around 270 thousand Bitcoins have been transferred to entities considered as savers.<\/p>\n
For its part,\u00a0BlackRock<\/b>\u00a0, the investment company with the most assets under its management in the world, will include\u00a0Bitcoin derivatives<\/b>\u00a0in its product offering. It filed updated prospectuses with the SEC to include\u00a0cash settled BTC<\/b>\u00a0futures as an investment option in two of its funds.<\/p>\n
At the beginning of 2020, Bitcoin had an average price of\u00a0$ 7,300<\/b>\u00a0and closed the year at\u00a0more than $ 29,000.<\/b>\u00a0That means an approximate growth of 400% in 12 months. As of early December of that year alone, the cryptocurrency was worth about\u00a0$ 19,000,<\/b>\u00a0representing a\u00a053% increase in one month.<\/b>\u00a0Then, in the first days of 2021, it shot above\u00a042,000<\/b> , then lost 20% of its value.<\/p>\n<\/blockquote>\n