JPMorgan’s strategic team, led by Nikolaos Panigirtzoglou, argued that Bitcoin is more appropriate to characterize as a risky asset than a defensive asset.
In a new report, JPMorgan experts note that the correlation of the bitcoin rate with the S & P500 index has increased markedly since March 2020. A correlation with the gold price was also noticed, so that both gold and bitcoin are now more suited to the concept of a risky asset. Due to the correlation, Bitcoin is now difficult to use to hedge stock market risks.
Analysts have noted the interest in the first cryptocurrency from institutional investors, however, they do not expect the BTC rate to return to $ 40,000 soon. decline.
“At the moment, the inflow of institutional funds in GBTC is insufficient for Bitcoin to break through the resistance of $ 40,000. Therefore, there is a risk that futures traders will get rid of positions on Bitcoin,” the report says.
Earlier, the bank’s analysts said that the rate of the first cryptocurrency may well reach $ 146,000. In the new report, they confirm their opinion, but once again emphasize that the forecast is long-term and growth to this mark will take several years for Bitcoin. And in the near future there is a chance of a noticeable decrease in BTC:
“Given the decline in investment in GBTC and the overall slowdown in the market, we think the short-term balance is more indicative of a decline in bitcoin.”
Earlier, Newton Advisors founder Mark Newton said that the “bullish rally” in Bitcoin could stall as early as early 2021. Judging by the fact that the current BTC price record has been held since January 8, the analyst was right.
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