Experts from investment bank JPMorgan Chase warned of a possible further decline in bitcoin price and are expecting a bear market for the leading cryptocurrency.
Analysts from the financial institution examined the trend in bitcoin futures and saw “an unusual development” and a reflection of how weak bitcoin demand is at the moment from institutional investors.
They also think the return to the so-called “backwardation” in recent weeks was a negative signal that was leading to a bull market.
Back in April, the largest crypto by market capitalization reached an all-time high of almost $65,000. However, in May, after Elon Musk announced that Tesla will no longer accept the asset as payment, bitcoin prices started to dwindle and eventually saw a flash crash that made it fall to below $30,000.
Some disagree with the analysts
Some people were not convinced by the sentiments of the JPMorgan analysts and used Twitter to express disagreement.
A user going by the name DTC Crypto Trading even had some choice words for the “experts,” saying, “No clue who ‘analyzes” this but they might want to hire better people. Pretty much every time BTC has had a sustained period of backwardation, price moved up.”
Several people agreed with the statement of the Twitter user, similarly showing they are doubtful about what the analysts saw in their examination.
Some signs of life for the crypto alpha
After a persistent slump that made bitcoin prices unable to breach the $40,000 mark, the leading digital currency is finally showing signs of life, thanks partly to Musk once again.
The Tesla big boss said his company will resume supporting bitcoin payments once it becomes a “greener” cryptocurrency.
At press time, according to CoinGecko tracking, bitcoin is changing hands at $39,467 and is close to touching the $40K mark once again.
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