Ethereum has risen above $2,100, and Bitcoin is sitting at $35,000. Even altcoins showed some relief yesterday after rising substantially. All this after Bitcoin dropped to $30k and started to recover. Commenting on the current price action of BTC and ETH, JP Morgan says that the crypto markets have begun recovering from the losses. There could be a few more sell-offs before the market takes off again. Is this a sign of a bull market? Hell yes! So, should you get in now? I would say wait.
JPMorgan on the market
The analysts at the firm said that the market wouldn’t be very good in the near term. And there could be sell-offs that are made to cover losses. The mining costs are also going to increase after China has banned crypto which will reduce the hash rate and hence the price. And this is also not very positive for the market. There are still a lot of hurdles on the way, but the market has started to heal, says JPMorgan. The analysts are still not very positive about Bitcoin. They said, based on Gold, Bitcoin’s fair value is between $23k-$35k, which is not what we are expecting. JPMorgan also said that the price could decline to $25k before taking off again.
My take!
I don’t personally take the analysis made by JPMorgan’s analysts seriously. There are many firms that do their own research and analysis before giving a price target for Bitcoin. They also often adjust these target based on market sentiment. But taking a look at JPMorgan, that can’t be said. I remember that gave a target of $146,000 for BTC in 2021 and have retreated and gone back to that target price several times over. At this point, it just seems they say what the market looks like at the time. There is no vision, no actual analysis.
I also don’t believe that Bitcoin, when compared to gold, has a value of just $23k-$35k. The kind of advancement it brings to the financial industry is worth much more than that. Maybe we have to wait 5-10 years before BTC actually topples gold, but yes, I think it will.
What are your thoughts JPMorgan saying that Crypto markets have begun recovering? And do you personally take their analysis seriously? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Coinbase can now legally operate in Germany after approval.
