To many big-time crypto investors, Bitcoin is Becoming a losing game.
Earlier this week, the cryptocurrency market took another hit when Bitcoin’s value went below US$30,000. Many crypto experts fear that this level of volatility can have a bigger implication on Bitcoin’s value. Regular investors believe that Bitcoin can now have a tough time getting back up to the US$40,000 mark.
One of the prominent names that share the same opinion is JP Morgan. According to a report by Bloomberg, JP Morgan strategists anticipate that the selling of shares in Grayscale Bitcoin Trust is going to put pressure on Bitcoin. According to Nikolaos Panigirtzoglou, a JP Morgan strategist, despite the fact that Bitcoin saw some correction, the firm is unable to shake away its negative outlook for Bitcoin and the cryptocurrency market, on the whole.
Bitcoin reached its all-time high of US$60,000 and then declined to settle at a high of US$40,000. Fully aware of the crypto market volatility, Bitcoin traders are hopeful that its value will reach US$40,000 or closer in the coming months. JP Morgan’s strategists, in fact, think otherwise. Comparing Bitcoin’s volatility with gold, the strategists think that Bitcoin’s fair value is between US$23,000 and US$35,000. At the time of writing, Bitcoin is trading at US$34,576.
The Bullish Perspective
After JP Morgan’s bearish view on Bitcoin, Galaxy Digital Holdings has a bullish call for Bitcoin’s value. The CEO of this asset management firm that operates in the digital asset, cryptocurrency, and blockchain industry claims that he is not nervous about Bitcoin’s falling prices. China’s crypto crackdown has made the cryptocurrency market tighter. While traders are questioning China’s influence on the cryptocurrency market, Galaxy CEO Michael Novogratz opined, “A lot of cryptos happens in Asia, a lot of it is Chinese focused. So, we’re seeing big liquidations, so it’s hard to call a bottom.”
According to Novogratz, the Chinese ban on cryptocurrency is a long-term positive for Bitcoin. Facebook’s head of payments and the Diem crypto project lead, David Marcus, also states that China’s stringent rules on Bitcoin mining are a “great development” for Bitcoin.
Amidst these polarizing opinions, many traders agree that this Bitcoin price drop is opening potential investment chances for people who have not invested in Bitcoin yet but always wanted to. Views on Bitcoin’s performance might become one-sided if its value manages to touch US$40,000 and surpass it without much volatility. But every day is a new day in the cryptocurrency market, so coming up with conclusive theories is a waste of time.
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