Bitcoin (BTC) has been struggling to stay over the $3,500 mark for quite some time now. The digital currency, which surged over the $4k mark a couple of weeks back, recently plunged below the $4k mark and it is still struggling to surge over that level.
Analysts at JP Morgan said that the value of Bitcoin (BTC) could decline further. According to the analysts, Bitcoin (BTC) could decline below the $1,260 mark, while banks will not benefit from blockchain technology for at least 3 to 5 years. This was revealed in a report by Reuters on the 24th of January.
The Value of Digital Currencies Is Still Unproven
According to the report, analysts from JP Morgan – one of the major investment banks in the world – think that the true value of digital currencies is yet to be proven. Adding that they only make sense in a hypothetical dystopian occasion, wherein traders and investors have lost faith in top traditional assets such as the U.S dollar and gold.
In the report, the analyst stated that: “Even in extreme situations such as a recession or financial crises, there are more liquid and less complicated instruments for transacting, hedging, and investing than digital currencies.”
The global investment bank also said that the involvement of institutions in the digital currency space has greatly reduced over the last six months, with the crypto market being dominated more by individual traders. According to the crypto report, the firm said that using digital currency as a means of payment will remain challenged. The firm added that they were not able to find any top retailer that accepted digital currency in 2018.
Bitcoin (BTC) Could Test $2,400 and Then $1,260
The analysts at the global investment bank have further predicted that the value of Bitcoin (BTC) could drop to around $2,400, and this could pave the way for further declines below the $1,260 if the present bear market persists.
While the bank suggested that the widely hyped distributed ledger technology won’t make much difference for banks in the next three to five year, JP Morgan still said that blockchain technology has the potential to greatly reduce costs for banks across the globe and digitize various complex processes. Jamie Dimon – the Chief Executive Officer of JP Morgan – is vocally critical of digital currencies.
Dimon is highly bearish on crypto, including the world’s largest digital currency by market cap – Bitcoin (BTC). Back in September last year, the CEO called Bitcoin (BTC) a fraud. Previously, he also stated that he does not care about Bitcoin (BTC).
However, he acknowledged the potentials of distributed ledger technology. The CEO said that blockchain is real, its technology is real, but Bitcoin (BTC) is not the same as a fiat currency. Jamie Dimon is not the only critic of Bitcoin (BTC) and digital currency. The digital currency space has a lot of critics over the past years, but there are still a lot of people that believe in digital currencies and their underlying technology.
Bitcoin (BTC) Price Today –
BTC / USD
At the time of writing, Bitcoin (BTC) is changing hand at $3,555 after an increase of less than one percent over the past twenty-four hours. The current market cap of the digital currency is $62.21 billion and its trading volume over the past twenty-four hours is $2.71 billion.