JPMorgan analyst sees further fall in Bitcoin price

JPMorgan analyst Nikolaos Panigirtzoglou did not rule out further downside for Bitcoin’s price, Yahoo Finance reports.

“Earlier we stated that Bitcoin’s inability to clear the $60,000 barrier would automatically lead to a bearish impulse and trigger further position closures. This, likely, became a significant driver of last week’s correction, prompting trading advisers and momentum-following investors to trim positions,” he said.

In the mid-term, Panigirtzoglou believes that Bitcoin’s fundamental value lies in the range of $24,000-$36,000. He also expressed the view that May’s market crash significantly weakened institutional demand, leaving BTC price unable to recover to previous levels.

“There is no doubt that the recent boom-and-bust cycle serves as a barrier to institutional adoption of cryptocurrency markets and, in particular, Bitcoin and Ethereum,” the expert explained. “A simple rise in volatility, especially relative to gold, represents a barrier to institutional adoption. It reduces the appeal of digital gold relative to traditional gold.”

As reported, JPMorgan chief Jamie Dimon urged investors to stay away from cryptocurrencies.

Follow ForkLog news on Facebook!