Several JP Morgan analysts have predicted that Bitcoin possibly will drop below $1,260, while banks will not likely gain from blockchain for three to five years, professionals the report of Reuters on Jan. 24.
As per Reuters, analysts out of your chief international investment bank think the true property value cryptocurrencies is still unproven. The report further added construct y only option in a hypothetical “dystopian” event, wherein investors you are confidence in main traditional assets much like the U.S. dollar and gold.
The analysts stated in a report that there is extreme scenarios enjoy the recession or financial crises, you’ll find less-complicated and more liquid instruments for investing, transacting, and hedging in comparison to cryptocurrencies and digital assets.
JP Morgan also mentioned that institutional involvement from the cryptocurrency and digital assets domain has dropped in the last six months. Based on them, individual traders earning up the majority of the market. In their report, the business also claimed that using cryptocurrency for payments will always be challenged. The report further added that firm was unable to find any major retailers that accepted cryptocurrency in 2019 .
The investment bank’s analysts have further suggested that Bitcoin is required to fall close to $2,400. Depending on them, it will even fall below $1,260 if your current bear market persists. For the duration of reporting, the biggest cryptocurrency by market cap is trading about $3,588, down around 1.8 % over the past week, per data from CoinMarketCap.
While costs bank predicted of the fact that widely-hyped blockchain technology could not make any substantial difference for banks at the very least three to five years, JP Morgan still figured distributed ledger technology has potential to reduce costs for global banks and digitize a variety of complex processes.
It should be noted that Jamie Dimon is vocally critical of cryptocurrencies and digital assets, including Bitcoin, that she called a scam in September 2019. Nonetheless, he admits associated with the blockchain, mentioning that Blockchain is real, it’s technology, but Bitcoin is not the same as a fiat currency.