Bitcoin Bad start? JPMorgan Chase: Only 5% of consumers expect BTC to exceed $ 100,000 in January

Bitcoin (BTC) fell below $ 40,000 to $ 39,650 and is up 17% since New Years Day, as it rose almost $ 48,000 at the start of the year. before. The Bloomberg report also noted that this was the worst start to the year since at least 2012 (trading started in 2009 and data starts were limited). Bitcoin has fallen nearly 40% from its all-time high of $ 69,000 in November last year to $ 42,190 at press time.

The pervasiveness of the spread of covid-19 has led the US government and central banks to release data support measures, allowing businesses and investors more access to the cryptocurrency market, and Bitcoin is entered a major market last year. However, the rise in inflation and the balance of payments must be accelerated as the Fed unpredictably did at the end of last year due to the pressures of the economy and inflation. He has touched since the end of the year.

Head of Infrastructure Capital Advisors, Jay Hatfield, said cryptocurrencies will continue to boil as the Federal Reserve cuts stocks. Also plan: Bitcoin could end 2022 below $ 20,000. Fed tightening not only affects interest rates, but also carries financial risks when the Fed leaves capital markets. Risky investments such as underperforming technologies, memes products and cryptocurrencies will be negatively impacted compared to other markets. Since these investments are roughly double the total market value, the value of the risk also doubles the value of the product.

Bloomberg analyst Mike McGlon said in an interview that $ 40,000 is a significant level of support for Bitcoin. Cryptocurrency is a good sign that the risk of appetite is decreasing now. However, he is hopeful that Bitcoin will eventually become a marketable commodity as the world becomes more digital.

Noelle Acheson, head of market research at Genesis Worlds, said Bitcoin's plunge appears to have been driven by short-term traders rather than long-term holders. In fact, his analysis shows that long-term holders are more likely to fall.

Bloomberg also cited data from CoinShares, noting that total income from digital assets currently peaks at $ 207 million. Of that amount, around $ 107 million came from Bitcoin.

JPMorgan Chase: Only 5% of Consumers Expect Bitcoin to Reach $ 100,000 by Year End

Meanwhile, the Bitcoin Fear and Danger Index has been in bullish territory for almost a week. According to a recent report by JP Morgan, only 5% of consumers polled by JP Morgan believe that Bitcoin will reach $ 100,000 by the end of 2022, Bloomberg announced. However, we expect 40% of our customers to exceed $ 60,000 by the end of the year.

JPMorgan expert Nikolaos Panigirtzoglou said he was not surprised by Bitcoin's weakness.

“Our indicator as Bitcoin futures looks overbought. Bitcoin's fair value is expected to be between $ 35,000 and $ 73,000, depending on investors' perception of its volatility relative to gold.

In November of last year, when the price of bitcoin was good, JP Morgan Chase reported on digital asset research at the time, claiming that cryptocurrencies such as bitcoin would continue to grow as the market grew. market would evolve. If it was pretty much more than an inflation hedge and could exceed the value of gold in any other currency market, the value could reach $ 146,000 in the long run.