JP Morgan analyst says Bitcoin Bear Run will end when its share of the crypto market exceeds 50%

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An analyst at financial services giant JP Morgan gave a simple indicator that could help predict when the current bearish run for Bitcoin will turn around. JP Morgan’s Nikolaos Panigirtzoglou said that in the volatile cryptocurrency market, Bitcoin could start to rise again, if a few basic conditions are met. In a TV interview, Panigirtzoglou explained why he believes the current bearish phase in cryptocurrency may be coming to an end.

The basis for his optimism is a preliminary indication that institutional investors have moved their funds to Bitcoin from other cryptocurrency tokens in recent weeks. This is a trend reversal that was seen in April, when the stock market crash in the price of Bitcoin in INR, along with other cryptocurrency prices, began this year. In an interview with CNBC, Panigirtzoglou said that Bitcoin’s dominance over the overall value of the crypto market provides a glimpse of the end of its recent downward spiral.

As Bitcoin’s dominance hovers around 45%, the analyst said he would like to see the first digital coin dominate 50% of the overall cryptocurrency market. A healthy number in terms of Bitcoin’s share as a percentage of the cryptocurrency’s total market cap at 50% or more. I think this is another indicator to watch for whether this bear phase is over or not, Panigirtzoglou said.

Bitcoin was trading at $ 34,156 (around Rs 25.38 lakh) at the time of writing, according to CoinDesk. It hit an all-time high of nearly $ 65,000 (around Rs. 47.3 lakh) in April. When the market collapsed it came down to less than $ 30,000 (around Rs. 21.8 lakh) before picking up a bit.

There has been a divergence between Bitcoin and other cryptocurrencies. There was also some institutional interest from Bitcoin towards Ethereum in April, and now we see the opposite, the analyst said, adding that this reorientation of funds suggests that the recent price of Bitcoin appears to be attractive to institutional investors.

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