JP Morgan, an investment bank based in the U.S., recently mentioned its interest in Bitcoin. The bank stated that it was keen on accepting the $38,000 benchmark as Bitcoin’s price. Bitcoin recently experienced an increase of 28% from its initial $29,722; hence their remark. With that light, Nikolaos Panigirtzoglou, Strategist for JP Morgan, said:
“The constant bearish crypto market has experienced multiple corrections. Compared to earlier months, we are looking forward to a greater increase in prices from Bitcoin and its counterparts.”
The investment banking company revealed that it understands the bearish season and its effect on crypto. It mentioned that cryptocurrency is entirely volatile compared to real estate and stock investments. Hence, there is more room for Bitcoin and other cryptos to recover from the present phase. Going further, the bank also described the tragic crash of the Terra ecosystem as a source of panic for investors.
But crashes, exploitations, and rug pulls are everyday experiences in the crypto market. JP Morgan further stated that in its observation, there was a slight decrease in the number of VC funding for crypto projects. Earlier this year, JP Morgan issued a report declaring the possibility of Bitcoin hitting $150,000 in the long run. However, during one of its several client surveys, they met consumers’ opinion of Bitcoin hitting $60,000 at best.
On the other hand, altcoins have experienced the brunt of the market. Cryptocurrencies like Solana, Axie Infinity and Terra have hit their lowest since 2022. Solana and Axie Infinity lost over 50% of their recent all-time high since December. One of the many reasons for such an effect could be Russia’s war with Ukraine or China’s negative remark on the use of cryptocurrencies.
According to investors and analysts, the current cycle is the worst in history. Cryptocurrencies have hit their worst prices in years, but there might be more if we don’t see a retrace soon.