Here’s What It Will Take To Pull Bitcoin Out Of Its Bear Market, According To JPMorgan | Currency News | Financial and business news

[ad_1]

Nurphoto / Getty Images

The bearish bitcoin market continues as momentum traders unwind their positions, JPMorgan said in a note Wednesday. The bank is looking for signs of further institutional adoption to help get bitcoin out of its rut. “We believe bitcoin’s share in the overall crypto market should normalize further and possibly exceed 50%” to end the current bear market, JPMorgan said. Sign up here for our daily newsletter, 10 things before the opening bell.

The ongoing bearish bitcoin market shows no signs of ending anytime soon, JPMorgan said in a note Wednesday.

The bank is looking for indications that the worst bitcoin price decline may be behind us, but to claim that the bear market is over, JPMorgan wants bitcoin’s valuation share in the broader market for cryptocurrency exceeds 50%.

“We believe that bitcoin’s share in the total crypto market should normalize further and possibly exceed 50% (as it did previously towards the end of 2018) to be more comfortable asserting that the current bear market is behind us, ”JPMorgan explained.

Bitcoin’s valuation share across the cryptocurrency market peaked at nearly 70% earlier this year. It is currently around 46%, according to the bank. The continued unwinding of momentum traders’ positions is not helping bitcoin, the bank noted.

Additionally, JPMorgan is seeking increased adoption of bitcoin by institutional investors. And while some institutions like Ark Invest and MicroStrategy have bought bitcoin in recent weeks, those purchases are not as encouraging as they might sound, according to JPMorgan.

“These institutional announcements are far from encouraging as they do not reflect new entrants, but rather existing investors with a vested interest in supporting bitcoin prices,” JPMorgan said.

These purchases by ARK Invest have reached the key level of $ 30,000, which is considered an important level of technical support that could dictate the future direction of bitcoin prices. Bitcoin successfully tested that level on Wednesday and jumped up to 10% amid an ongoing discussion amid Bitcoin bulls Elon Musk, Jack Dorsey and Cathie Wood.

Read more: Cathie Wood, Elon Musk and Jack Dorsey have joined forces to discuss bitcoin and tout its use cases around the world. Here’s the full rundown of what they predicted about the future of crypto.

JP Morgan

[ad_2]