JP Morgan: BTC Could Plunge to $1,260, Blockchain Won’t Help Banks in Next 5 Years
JP Morgan analysts assessed the state of the crypto industry. They argue BTC could fall to $1,260. The value of cryptocurrency is unproven, and the blockchain technology will not help banks for at least the next 3-5 years.
According to Reuters, analysts at a financial conglomerate JP Morgan, are confident that the real value of cryptocurrency cannot be determined because they are not backed up by anything. In general, cryptocurrencies make sense only in an anti-utopian reality, in which investors have lost faith in traditional assets like the US dollar and gold.
But even in times of major recession or financial crisis, there are enough instruments on the market that are more liquid and less difficult to invest, transfer and hedge, believe JP Morgan.
Nevertheless, analysts are confident that the BTC support price is at the level of $2,400. In the near future, bitcoin may plunge to this mark. If the bearish sentiment continues to dominate, the price of BTC may fall to $1,260 and below. At the time of publication, bitcoin was trading at $3,564, according to CoinGecko.
Analysts also looked at the BTC futures market. Based on the trading volume of this instrument, they concluded financial institutions have lost interest in cryptocurrency over the past 6 months. Now, most of the market consists of private investors.
As for the implementation of crypto payments, analysts could not find at least one major retailer who would accept cryptocurrency for payment. So the use of cryptocurrency as a means of payment remains "challenged."
Despite all this, analysts are sure blockchain — the technology behind cryptocurrency — possesses potential. And it will help banks reduce costs and digitalize some operations. But there won’t be a breakthrough in the next 3-5 years.