Just when Bitcoin investors began longing for a green-ray of hope at the end of the dip tunnel, JPMorgan knocked off the lights with the latest bearish prediction that BTC still has a lot of dipping to do.
26,000 Feet Below Dip Levels
Nikolaos Panigirtzoglou, J. P. Morgan’s renowned bitcoin expert, made the prediction earlier yesterday, asserting that the past few weeks have seen BTC exemplify the type of volatility many market observers constantly warn about. As such, a large percentage of new entrants who only dipped a toe in the current and almost got swept off are now withdrawing in droves, leaving the crypto market with a rather slow pick-up.
All attempts to sear through the ceiling have been weakened by regulatory hiccups from China, crypto-tax laws in the US, and a bad deal it had entered with the Dogefather, Elon Musk.
Since BTC hit an iron cloud at $63,000 ATH back in April, it has struggled to keep up to its record for over the past six weeks, and the Bank’s Bitcoin expert believes Bitcoin will likely test a $26,000 price floor correction before any hopes of long term rebound can come by.
A Stall on Institutional Demand
One of the reasons upon which Panigirtzoglou based his predictions is the decline of institutional investors in May. Many pundits touted last month as the period for bitcoin’s breakthrough, seeing how April witnessed an influx of corporations looking to field BTC in their balance sheet.
But those predictions fell short of reality, sending a signal of caution, and spurring widespread holdback among institutional investors who many predicted would follow in the footsteps of MicroStrategy and Tesla, and throw a lot of cash into BTC before the end of the month.
As it stands, without that inflow of investments, Bitcoin’s predicted vigorous growth has become strenuous and hectic.
Bitcoin’s Melt-off in May
Over 37% of Bitcoin’s price value was shed off in May, leading the apex coin to a 43% melt-off from its $64,829 zenith ATH in April. A series of corrections and minor rebounds has seen it hover around the $34,000 to $44,000 range over the past four weeks.
BTCUSD Chart By TradingView
Currently, large-scale investors like Michael Saylor are now beginning to address its growing energy concerns and the issues raised by Elon Musk that have subconsciously eroded a significant level of long-term investor confidence.
On-Chain Correlation
Panigirtzoglou’s prediction, though pessimistic, agrees with earlier-released on-chain analysis that confirms a lot of new investors into the bitcoin market were panic selling their young BTC coins.
It appears many still want BTC to remain as a crypto asset with short-term profitability, but the asset appears to be rapidly changing into a long-term asset class, rewarding those choosing to hold through thick and thin.
