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Cryptocurrencies Slide, JPMorgan Issues Stark Warning

Bitcoin and several major cryptocurrencies have been languishing over the last month, having lost $1 trillion from the combined price of the overall crypto market since its peak at $2.5 trillion in May.

Bitcoin prices, in particular, have been highly volatile and will probably continue to be so for quite some time. Just this week the prices of crypto saw some impressive gains after El Salvador’s announcement in which the president confirmed that he wanted to adopt Bitcoin as legal tender. Bitcoin has not been the only cryptocurrency that has been volatile, major altcoins including Ethereum, Binance’s BNB, and the meme-inspired cryptocurrency Dogecoin, have all seen major hits.

According to JPMorgan analysts, a Wall Street giant, Bitcoin prices are experience backwardation, and in the recent weeks implying a bear market will take over soon. Meanwhile, a team of JPMorgan strategists led by Nikolaos Panigirtzoglou has noted in a report filed by Bloomberg stating Bitcoin’s price crashing from $50k in May is an unusual development which indicated that Bitcoin demand from institutional investors is quite weak.

Bitcoin and crypto price boom among major altcoins such as Ethereum, Cardano, BNB, and Dogecoin surges was driven by institutional adoption and retails investors experiencing FOMO (Fear Of Missing out) Bitcoin’s dominance over the crypto market has fallen to around 40% mark as many traders and investors have poured into altcoins. As such, the leading cryptocurrency has fallen from its original dominance at 70% during the start of the year.

According to JPMorgan analysts, Bitcoin’s dominance will need to turn over 50% before the bull market returns. However, the Bull Run was halted halfway by Tesla and Musk’s withdrawal from the cryptocurrency.

Ethereum lost half of its value during a sell-off caused by china’s crackdown leading to panic selling of various cryptocurrencies including Bitcoin. Some experts believe that Bitcoin prices may be bottoming, and as such corrections of this level are common.

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