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JPMorgan’s bitcoin depreciation projection gets backing, price bubble expected



Bitcoin fails to maintain surge after hitting $50,000 mark

Investment bank, JPMorgan Chase, have informed bitcoin investors that the most popular cryptocurrency will still crash below the $30,000 mark, and other analysts support this forecast.

Analysts of the American-based company, Josh Younger and Veronica Mejia Bustamante, made the projection in a note concerning the outlook of the crypto market.

They stated that the bitcoin price will fall to about $25,000, that’s 27.5 percent drop when Ripples Nigeria compared the forecast to the current price which is $34,520.28 according to Coindesk.

Bustamante and Younger said the meltdown will soon take place as investors in the bitcoin community will start selling off to cash-in on their investment.

Ripples Nigeria understands that the sell off will either be triggered by effort to protect loses on the part of late comers or first movers engaging in profit-taking.

READ ALSO: BUSINESS ROUNDUP: Bitcoin investors lose $59.9bn; Dangote to invest in Cameroon’s oil market; Other stories

JPMorgan Chase’s projection comes amid speculations that bitcoin could have reached its price floor (stable price range), but bitcoin investors haven’t ruled out a price bubble after the ongoing price correction.

In an interview with Cryptocurrency expert, Olumide Adesina, he told Ripples Nigeria that the projection isn’t out of place, as he also believes that the value could depreciate further from its current selling price.

But Adesina is confident that the bitcoin valuation will not stay down as it will climb after the healing process – as at the time of filing this report, it was down by 4.28 percent.

By Fakoyejo Ayodeji

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