Bitcoin Price Analysis: JPM Analysts Propose Reason Behind Recent Rally

24 October 2021 | Updated: 24 October 2021

JP Morgan Chase analysts, led by Nikolaos Panigirtzoglou, published a research work detailing the reason behind the recent Bitcoin (BTC) boom. The research explained that the hype surrounding the first-ever approved Bitcoin futures ETF in the US is not responsible for the rally, instead inflation is driving BTC to record highs.

ProShares Bitcoin Strategy ETF, BITO, went live on the NYSE last Tuesday and has amassed over $1 billion in investments. A second, Valkyrie Bitcoin ETF (BTF), launched on the NYSE last Friday.

The JPM analyst team asserted that: By itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin. The analysts added that:

“Instead, we believe the perception of bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into bitcoin funds since September.

The initial hype with BITO could fade after a week.”

The price of BTC spiked to a record high of $67,000 earlier this week but has dropped to the $61,000 level (at press time). The benchmark cryptocurrency has increased by over 40% since the start of the month and over 90% since the start of the year.

Key Bitcoin Levels to Watch — October 24

BTC has fallen below the $62,000 area amid a sharp reversal from overbought conditions. We expect a bearish correction to the $60,000 or slightly lower over the coming hours and days, followed by a rebound into the $63,000 – $64,000 pivot area.

BTCUSD – 4-Hour Chart

Our bullish prediction comes as the 4-hour MACD line drops to the -570 level, indicating that market conditions are now ripe for a sharp bullish rebound.

Nonetheless, in the event of a bearish continuation below $60,000, we expect the $59,000 line to repel any further declines.

Meanwhile, our resistance levels are at $66,000, $67,000, and $68,000, and our key support levels are at $64,000, $63,000, and $62,000.

Total Market Capitalization: $2.51 trillion

Bitcoin Market Capitalization: $1.13 trillion

Bitcoin Dominance: 45.3%

Market Rank: #1

 

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JP Morgan Executive Claims Ethereum is Overvalued

20 September 2021 | Updated: 20 September 2021

The Managing Director of multinational bank JP Morgan Chase & Co., Nikolaos Panigirtzoglou, recently revealed that he believes Ethereum (ETH) is an overvalued digital currency.

After conducting several evaluation metrics of the network activity, he proposed a figure that best translated the value of the Ether. Panigirtzoglou and his team placed this estimate at $1,500, 55% lower than its current market price.

The Managing Director noted that ETH rallied due to optimism about future developments of the project. Panigirtzoglou noted that:

“We look at the hashrate and the number of unique addresses to try to understand the value for ethereum. We’re struggling to go above $1,500. There is a question mark here. The current price is expressing an exponential increase in usage and traffic that might not materialize.”

JP Morgan Cites Loss of Uniqueness for Ethereum as Tipping Point

According to reports, some of the research has its foundation rooted in the assertion that the idea behind Ethereum has lost its uniqueness. The study explained that the network initiated the concept of Smart Contracts in the crypto industry. However, this feature has become a common feature for a deluge of networks, dubbed “Ethereum killers,” looking to steal market share from the market giant. Panigirtzoglou noted that:

“It’s not unique. You’re already seeing competition from Binance, competition from Solana. And there are going to be more in the future.”

While the new networks pose a real threat to its dominance, Ethereum’s impact on the market might prove very difficult to surpass. Even with immense funding, most of these projects operate on the Ethereum ecosystem, further building the case for Ethereum’s market control.

Speaking on the topic, the CEO of Skale Labs, Jack O’Holleran, noted in an interview with Insider that:

“Despite major partnerships [getting] announced on other chains, we still see the absolute majority of developers [getting] pulled into the Ethereum vortex.”

 

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Bitcoin to End Bear Run Once Dominance Crosses 50%: JP Morgan Analyst

4 July 2021 | Updated: 4 July 2021

Lead JP Morgan analyst Nikolaos Panigirtzoglou has commented on when he expects the prevailing Bitcoin (BTC) bear run to end. In a recent interview with CNBC, the analyst asserted that Bitcoin would reenter a bull market once its market dominance exceeds 50%. Panigirtzoglou noted that:

“A healthy number there, in terms of the share of bitcoin as a percentage of the total cryptocurrency market cap, is 50% or above. I think that’s another indicator to watch here in terms of whether this bear phase is over or not.”

The lead JPM analyst recalled that BTC’s dominance was at 60% at the beginning of April, noting that the benchmark cryptocurrency’s low market dominance is a negative indication it is in a subdued mode. Panigirtzoglou highlighted that this metric has soared over the past few weeks, which is a positive development.

At press time, Bitcoin trades at $35,500 and dominates 45.3% of the total crypto market. While Panigirtzoglou acknowledged that there has not been a lot of whale activities in BTC recently, he argued that:

“The flow into ethereum funds has slowed over the past two to three weeks, at the same time as the flow into bitcoin funds … has improved. That means there is perhaps a relative value opportunity that some institutional investors are seeing to buy bitcoin and sell other cryptocurrencies.”

Key Bitcoin Levels to Watch — July 4

Bitcoin appears to be on a healthy recovery path as the primary cryptocurrency reclaims the $35k barrier. BTC currently shows immense bullish activities despite the subdued trading volume. At press time, BTC volume hangs at a meager 69 points despite the recent sharp spike.

BTCUSD – 4-Hour Chart

Nonetheless, we expect trading volume to pick up once BTC restores stability above the critical $36.5k – $37k axis. Currently, the benchmark cryptocurrency is locked in battle with the 200 SMA, as bears lose grip.

Meanwhile, our resistance levels are at $36,000, $36,500, and $37,000, and our key support levels are at $35,000, $33,750, and $33,000.

Total Market Capitalization: $1.47 trillion

Bitcoin Market Capitalization: $664.9 billion

Bitcoin Dominance: 45.3%

Market Rank: #1

 

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JP Morgan Announces Job Opening for Ethereum and Blockchain Developers

22 April 2021 | Updated: 22 April 2021

After several years of opposing cryptocurrencies and even calling it a fraud at some point, behemoth investment bank JP Morgan Chase & Co. has announced that it is hiring developers for Ethereum and blockchain development.

The job listing was published on Glassdoor, a renowned US job and recruitment website. The firm noted that it is looking to hire developers with experience in writing smart contracts, implementing business applications, and authenticating cryptographic protocols on the blockchain.

The recent development is a surprising change of stance for the company towards cryptocurrencies, considering how antithetical JPM was on Bitcoin (BTC). in 2017, famously stated that crypto assets were “worse than tulip bulbs.” He also asserted that he would terminate the appointment of any JP Morgan employee dealing with cryptocurrencies.

CEO of JPM Jamie Dimon

Bitcoin’s Supply is Fizzling Out
The recent job posting could be a sign that JPM is joining the financial institution train hopping on crypto and blockchain technology. The US-based banking giant noted that it would begin dealing with cryptocurrencies once a certain level of demand from customers seeking crypto exposure gets met.

Recently, JP Morgan advised investors to allocate 1% of their portfolio into Bitcoin as a hedge, highlighting the declining supply of BTC due to large investor purchases. Glassnode recently revealed that the liquid supply is plummeting as whales and miners hoard and increase their holdings.

Reports show that about 78% of all Bitcoin in circulation is lost or being HODLed, leaving a measly 4 million BTC to trading. An example of institutional hoarding of Bitcoin is Grayscale, which currently holds over $36 billion worth of BTC. Grayscale recently revealed that it has $50 billion in total assets under management.

 

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