Bitcoin has been undergoing a serious correction as of late. The world’s number one digital asset by market cap has hit a new high of approximately $63,000 per unit, but since that day, it has lost about $8,000 off its price. Thus, the currency is now trading for just over $55,000, and companies such as JPMorgan are beginning to take notice.
JPMorgan: We Need to See $60K Again Soon
In a new report, JPMorgan appears to be rather bearish on bitcoin… again. To be fair, it is not like the company has ever been fully heartfelt towards BTC, and its strategists have produced reports in the past claiming that the currency is not something to be taken seriously. However, the latest document produced by the firm appears to spell gloom and doom for the asset granted it does not move past the $60,000 line again in the coming future.
Granted this figure cannot be reached soon, JPMorgan warns that all momentum signals “will collapse,” and that the price of bitcoin could suffer like it never has before. The report explains:
Over the past few days, bitcoin futures markets experienced a steep liquidation in a similar fashion to the middle of last February, middle of last January or the end of last November… Whether we see a repeat of those previous episodes in the current conjuncture remains to be seen. Momentum signals will naturally decay from here for several months given their still elevated level.
The report says that this time around is somewhat different from the three mentioned periods given that since the momentum for bitcoin is so high, the currency could find it rather difficult to maintain or return to given that there is a reversal in the next few months.
The price of bitcoin rose to a new high approximately two weeks ago after it was announced that Coinbase – one of the world’s largest and most popular cryptocurrency exchanges – would go public on the Nasdaq. The news sent shockwaves through the crypto industry and caused several investors and digital currency fans to froth at the mouth with delight. The price of bitcoin rose to the occasion along with the prices of several of its altcoin cousins.
Could Things Be Coming to an End?
However, the good fortune was short lived, as just a few days later, bitcoin fell into the mid-$50,000 range, suggesting that the asset was the latest victim of what has come to be known as the “Coinbase Effect,” in which news surrounding Coinbase causes an asset to spike beyond measure only to drop into oblivion a few days after.
Thus far, bitcoin has fallen by as much as 15 percent, which has caused concern amongst crypto investors that the major rally we have been privy to since the end of last year may be coming to an abrupt and sudden end.
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