According to JPMorgan analysts, the largest cryptocurrency might continue falling in the short term. Bitcoin is much likely to keep following the worst May For Bitcoin in the past ten years.
JPMorgan strategists wrote that weaker institutional demand might drag Bitcoin prices below $30,000.
Based on the volatility of Bitcoin to gold, Bitcoin will continue to trade between US$24,000 and US$36,000 in the medium term.
The “theoretical target” for the BTC price is $145,000, according to JPMorgan.
US$145,000 is the same price as the gold held by the private sector for investment purposes. This price is currently about US$2.7. According to strategists, complete convergence or equilibrium of volatility is impossible for the future.
On Monday, senior financial analyst and trader Peter Brandt questioned whether the price of Bitcoin might rebound soon. Bitcoin is trading at $36,638. However, it still has fallen by around 1% in the past 24 hours.
Cryptocurrencies have fallen by about 37% in the past 30 days, but they have risen by 286% in the past year.
Institutional investors continue to withdraw from BTC to support ETH
As Bitcoin falls, institutional demand for Ethereum continues to surge. More than a quarter of the assets are accounted by Ethereum products under management (AUM) of crypto investment products.
The outflow of Bitcoin products has slowed down. In the past three weeks, 246 million U.S. dollars have been withdrawn from BTC investment products.
In the past week, we saw a massive inflow of US$74 million in institutional funds. It happened because investors tried to take advantage of the losses caused by the recent crash.
Institutional funds, more than 63%, have flowed into ether products. Ether products now account for 27% of the total asset management scale of crypto investment products-the highest share to date.
However, the recent momentum of Ethereum has once again sparked speculation about whether Ethereum is ready to flip Bitcoin. Ethereum currently beats the cryptocurrency’s honey badger regarding transaction volume, volume, fees, and transaction volume.
Ether is currently the second-largest crypto asset in trading volume, with a daily trading volume of 38.8 billion U.S. dollars, second only to Tether’s 103 billion U.S. dollars. In the past 24 hours, BTC worth approximately US$32.9 changed hands.