A decline in Bitcoin’s price below $30,000 could rekindle institutional interest in the first cryptocurrency. In an interview with Markets Insider, JPMorgan strategist Nikolaos Panigirtzoglou shared that view.
The piece notes that there are opposing viewpoints in the market. In particular, a senior OANDA analyst argues that a break of $30,000 would lead to increased selling.
Panigirtzoglou said that he has not yet seen funds willing to “buy the dips.” He sees risks of the bear market continuing for several months. The year’s uptrend in Bitcoin drew institutional interest, but the subsequent sharp rally produced a “pullback effect,” the strategist added.
According to the expert, signs of institutional demand returning would be a resurgence of contango in the futures market and a rise in Bitcoin’s dominance index.
Earlier in JPMorgan they described signs of a continued negative trajectory in Bitcoin’s price in the future.
Subscribe to ForkLog news on Twitter!