JPMorgan Says Crypto Market Is Healing And Expects To Fall In Prices Before Surrender – Markets and Prices Bitcoin News

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JPMorgan Chase released an investor note stating that the cryptocurrency market appears to be “starting the healing process.” In the near term, however, JPMorgan analysts expect more sales ahead of the capitulation.

JPMorgan Crypto Market Outlook

JPMorgan Chase analysts, including Josh Younger and Veronica Mejia Bustamante, wrote about the outlook for the cryptocurrency market in a note released Friday.

They explained that the near-term outlook for the crypto market is “difficult,” noting that blockchain data suggests recent cryptocurrency sales were made to cover losses. “There is probably still an overhang of underwater positions that need to be cleaned up in the market,” they detailed.

Analysts have also warned of the possibility of rising BTC production costs as China’s crackdown pushes bitcoin mining overseas. Nonetheless, analysts at JPMorgan see the stability of the bitcoin futures market as a positive factor. They concluded:

The cryptocurrency market is showing signs that it is not yet healthy, [but] it also seems to start the healing process.

Last week, another JPMorgan analyst, Nikolaos Panigirtzoglou, wrote that despite the recent correction, “we are reluctant to abandon our negative outlook for the bitcoin and crypto markets in general.” He stressed: “Despite some improvement, our signals remain generally bearish.”

Panigirtzoglou added that the fair value of bitcoin, derived from comparing its volatility with gold, is in a range of $ 23,000 to $ 35,000 over the medium term. He elaborated:

Prices would still need to drop to the $ 25,000 level before longer-term momentum signaled surrender.

What do you think of the comments from JPMorgan analysts? Let us know in the comments section below.

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