Bitcoin Bulls Face a Harsh Reality: JPMorgan
Those who hope to see a new Bitcoin peak during the current post-halving cycle might be in for a rude awakening. According to a recent report by JPMorgan banking analysts, the flagship cryptocurrency has already peaked in terms of its valuation and trading volumes.
The leading cryptocurrency reached its current peak of $73,737 on March 14 following the highly successful debut of various Bitcoin exchange-traded funds (ETFs). However, the cryptocurrency failed to sustain its bullish momentum. Multiple attempts to reclaim the $73,000 mark were unsuccessful.
Last week, the Bitcoin price plunged below the $54,000 level, marking the biggest correction of the current cycle at 27%. The cryptocurrency has been underperforming the U.S. equities market due to various bearish headwinds such as Mt. Gox’s repayments and massive sales initiated by the German government.
JPMorgan also noted the underwhelming performance of Bitcoin ETFs in June, which suffered from $662 million worth of outflows.
However, some analysts still believe the bullish cycle is far from over. For instance, Fundstrat’s Tom Lee recently reiterated his $150,000 price prediction, and commodity trader Peter Brandt is convinced that such a target is achievable for the leading cryptocurrency by 2025.
Despite the bearish trends, there are still signs that the market might be in recovery mode. For instance, Bitcoin spot ETFs managed to record a stunning $295 million worth of inflows on July 8, indicating growing demand.
