Bitcoin as well as other virtual currencies have been through numerous ups and downs throughout the previous few weeks, during which the price of bitcoin has fluctuated at a concerning rate. When we say concerning we know the nature of crypto and have learnt to understand that this is par for the course but we understand why someone used to investing in stocks would flag this up as an investment to be wary of. Especially when you consider what the overall market value was not that long ago.
The value of Bitcoin plummeted to around 28,600 USD per Bitcoin on the Bitstamp’s exchange based in Luxembourg, before rebounding to over 6K USD within hours. In the meantime, other virtual currencies like Cardano, Ethereum, BNB (Binance), XRP (Ripple) and Dogecoin have also fallen, leading to billions of dollars leaving the market.
JPMorgan Chase experts have predicted that the value of Bitcoin may fall lower over the mid-term. JPMorgan strategists headed by Nikolaos Panigirtzoglou stated in a note reported by Bloomberg that it is still likely going to take price plummets to the 25K USD value before longer-term drive signaled relinquishment. This gave Bitcoin an objective value between 23K USD and 35K USD over the mid-term, on the basis of a comparison made on its volatility against gold.
While JPMorgan has assigned Bitcoin a theoretical value of 140K on the basis of the convergence of Bitcoin’s volatility compared to gold, the cryptocurrency is around six times as prone to volatility as gold, granting it a middling value of 23K USD, or one-sixth of 140K USD.
The analysts wrote that in spite of this current week’s correction, they are still hesitant to drop their negative outlooks for Bitcoin as well as cryptocurrency markets in general. They also added that although there have been a few improvements, their signals continue to be bearish overall. Bitcoin has proven to be the prime driver of the crypto market thus long, with nearly all leading tokens experiencing huge losses since the March crash.
