Bitcoin has not been doing too well as of late. The currency hit a serious snag in May when after a series of negative events – including tweets from Elon Musk –the world’s number one digital asset sank by more than 40 percent, causing it to slip from its recent all-time high of approximately $64,000 per unit to the mid-$30,000 range. According to analysts at financial giant JPMorgan, bitcoin’s market share needs to jump beyond the 50 percent mark if the bearish trends that has been plaguing it for the past two months are to finally end.
JPMorgan Analyst on Bitcoin’s Stance in the Crypto Market
A little less than two months ago, the cryptocurrency market was enjoying a total market cap of more than $1.4 trillion. Of that, bitcoin accounted for approximately 46 percent, which was relatively high by any means, though according to Nikolaos Panigirtzoglou of JPMorgan, that number would need to rise beyond 50 percent if bitcoin is to experience further price surges.
In an interview, he stated that interest in bitcoin has been on a serious decline, and that things need to turn themselves around. He said:
It was like 60 percent back in the beginning of April. A healthy number there, in terms of the share of bitcoin as a percentage of the total cryptocurrency market cap, is 50 percent or above. I think that is another indicator to watch here in terms of whether this bear phase is over or not.
By the end of April, he says that bitcoin’s market share had fallen to about 40 percent, suggesting that the currency may have entered a period of decline even sooner than most analysts had assumed. However, he says that things are starting to reverse themselves a bit, and that the market share has jumped in recent weeks given some investors are looking to sell their altcoin stashes to buy more BTC.
In the long run, he is confident this will help the currency’s prospects improve, though the process is proving relatively slow at press time. He says:
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.
Several Different Ideas
Over the past several months, JPMorgan has published many contrasting reports relating to bitcoin’s price and where it could end the year. The company’s most recent document suggests that 2021 offers little hope for the digital currency, and that the asset is likely to remain low over the next six months.
This is completely different from the report it published last April, which suggested that bitcoin could strike a six-figure price of more than $100,000 by the time 2022 rolled in.