Since the price of Bitcoin crashed below $40k, we all have been in a bear market, waiting for it to end. There has been a lot of speculation about how it is just a dip, but somewhere we all know it’s not. Due to this, there is strong denial in the market regarding the fact that Bitcoin might take some time to recover. Even JPMorgan has given its prediction regarding when this bear market might come to an end. So, let’s take a look at the same.
JPMorgan’s Bitcoin bear market analysis
The lead analyst at JPMorgan said that the Bitcoin bear market would be over when its market dominance rises above 50%. This means if the total cryptocurrency market is worth $x trillion, then Bitcoin’s entire market cap should be well over $x/2 trillion. Currently, the market share of BTC is 46% which is not too shabby, but there is still a way to go.
Once we see recovery happen and BTC dominance rise again, a rally might happen again. This can be referenced from the data in April. When BTC’s dominance was over 60%, there was a huge rally, and the currency made new highs at $64k. The analyst also added another positive note for Bitcoin, saying that big investors are looking to sell other coins and get into Bitcoin. This inference was made from the data that showed fewer funds getting into ETH while more funds getting into BTC.
My take!
Bitcoin might or might not be in a bear market right now, but it’s not in a bull market either. Seeing that how it has been stuck between $30K-$40k, we could say that bears and bulls are in a balance here. Unless we strongly move past $42k, there is very little chance of the market recovery. And at the same time, like the last two times, it is very important for $30k to hold as support. If bears are not able to push BTC below $30k, then $100k by the end of the year is likely.
In order to invest at this point, it is best to start a daily, weekly or monthly SIP in Bitcoin. This will help in DCA (dollar-cost averaging) no matter where the price gets. And in the next bull run, you will be able to squeeze out huge gains.
What are your thoughts on the price of Bitcoin? And when do you think the Bitcoin bear market will end? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: REvil is demanding $70 million in Bitcoin as ransom from US firms.
