JPMorgan Bank warns cryptocurrencies will repeat bear markets in 2018
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In a recent research note, JPMorgan Chase, the largest US bank, writes that the current total capitalization of the crypto market is following in the footsteps of the 2018 bear market.
Many major cryptocurrencies, including Dogecoin, Litecoin, Chainlink, and others, have fallen more than 60% from their recent highs.
Bitcoin, the crypto king, is also 48% away from the April 14th ATH at press time.
For the entire crypto industry, the 2018 crypto winter was one of the heaviest and most haunting halves ever, with some prominent projects losing up to 99% of their value and thousands of projects each wearing a belt.
Comparison table 2018 and 2021 by JPMorgan Chase
JPMorgan believes Bitcoin will continue to decline and sets a mid-term target of just $ 23,000.
As reported by Cointelegraph, Scott Minerd, Guggenheim’s chief investment officer, recently said $ 10,000 could be Bitcoin’s “worst-case scenario”.
China’s ban is positive for Bitcoin
Currently, China’s crackdown on domestic miners is cited as the main reason for the drop in prices.
In the medium term, however, according to JPMorgan, the ban is very positive for Bitcoin:
“The crackdown on mining in China should be viewed as positive for Bitcoin in the medium term as it accelerates the hashrate shift away from China and makes it decentralized and cleaner,” the bank said.
According to U.today