Here is what it'll take to pull bitcoin out of its bear market, according to JPMorgan
- The bear market in
bitcoinis ongoing as momentum traders unwind their positions, JPMorgan said in a note on Wednesday.
- The bank is looking for signs of new institutional adoption to help lift bitcoin from its rut.
- "We believe that the share of bitcoin in the total
cryptomarket would have to normalize further and perhaps rise above 50%" to end the current bear market, JPMorgan said.
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Additionally, JPMorgan is looking for increased uptake in bitcoin by institutional investors. And while some institutions like Ark Invest and MicroStrategy have been buying bitcoin in recent weeks, these purchases are not as encouraging as they might appear, according to JPMorgan."These institutional announcements are far from encouraging as they do not reflect new entrants, but rather existing investors with a vested interest in propping up bitcoin prices," JPMorgan said.
Those purchases by ARK Invest have come around the key $30,000 level, which is viewed as an important level of technical support that could dictate the future direction of bitcoin prices. On Wednesday, bitcoin successfully tested that level and surged as much as 10% amid an ongoing discussion amid bitcoin bulls Elon Musk, Jack Dorsey, and Cathie Wood.Read more: Cathie Wood, Elon Musk, and Jack Dorsey joined forces to discuss bitcoin and tout its use cases to the world. Here's the full rundown of what they predicted about the future of crypto.
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