{"id":8210,"date":"2021-06-13T23:54:38","date_gmt":"2021-06-13T23:54:38","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/jpmorgan-warns-of-incoming-bitcoin-bear-market-citing-unusual-development-in-futures\/"},"modified":"2021-06-13T23:54:38","modified_gmt":"2021-06-13T23:54:38","slug":"jpmorgan-warns-of-incoming-bitcoin-bear-market-citing-unusual-development-in-futures","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/jpmorgan-warns-of-incoming-bitcoin-bear-market-citing-unusual-development-in-futures\/","title":{"rendered":"JPMorgan Warns of Incoming Bitcoin Bear Market Citing \u2018Unusual Development\u2019 in Futures"},"content":{"rendered":"

Investment bank JPMorgan Chase has warned of a further bitcoin price decline, expecting an incoming bear market. The bank\u2019s analysts look at the trend in bitcoin futures and see \u201can unusual development and a reflection of how weak bitcoin demand is at the moment from institutional investors.\u201d However, a number of people disagree with this analysis.<\/strong><\/p>\n

JPMorgan Warns of Incoming Bear Market<\/h2>\n

JPMorgan Chase analysts, led by Nikolaos Panigirtzoglou, warned of an incoming bitcoin bear market in a note to investors last week.<\/p>\n

The analysts looked at bitcoin futures which have been trading at a discount to the spot price, known as backwardation. \u201cWe believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market,\u201d they wrote, adding:<\/p>\n

This is an unusual development and a reflection of how weak bitcoin demand is at the moment from institutional investors that tend to use regulated CME futures contracts to gain exposure to bitcoin.<\/p>\n

JPMorgan\u2019s analysts affirmed that their outlook for bitcoin was negative. They pointed out another sign that worries them \u2014 the sharp decrease in bitcoin\u2019s market share of the total crypto market, which fell from 60% to about 40% between April and May. The analysts call this decline in the BTC<\/a> market share \u201ca bearish signal carrying some echoes of the retail-investor-driven froth of December 2017.\u201d<\/p>\n

They see similarities between the current situation and the bitcoin crash in 2018 when investors rushed into cryptocurrencies as they boomed in 2017 and mass exited as the prices plunged during 2018. The bitcoin futures curve was also in backwardation for most of 2018 when the price of BTC<\/a> dropped from about $15K to $4K, JPMorgan detailed.<\/p>\n

Some people took to Twitter to disagree with JPMorgan\u2019s analysis. Twitter account DTC Crypto Trading, for example, wrote: \u201cSo the \u2018analyst\u2019 at JPMorgan says that backwardation on BTC<\/a> while price is moving up is a sign of the bear market. No clue who \u2018analyzes\u2019 this but they might want to hire better people. Pretty much every time BTC<\/a> has had a sustained period of backwardation, price moved up.\u201d Several people agreed with this analysis.<\/p>\n

<\/p>\n

Meanwhile, rival investment banks are seeing huge demand from institutional investors. Even the CEO of JPMorgan, Jamie Dimon, recently admitted<\/a> that institutional clients want exposure to bitcoin. Goldman Sachs has repeatedly said that it is seeing huge<\/a> institutional demand for BTC<\/a>, noting that the cryptocurrency has become a new asset class<\/a>. Morgan Stanley is already offering some bitcoin investments<\/a> to wealthy clients due to the high demand for the crypto asset.<\/p>\n

Bitcoin\u2019s price moved higher Sunday afternoon following clarification<\/a> by Tesla CEO Elon Musk stating that his company will resume accepting the cryptocurrency \u201cWhen there\u2019s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.\u201d At the time of writing, the price of bitcoin sits at $38,874 based on data from Bitcoin.com Markets<\/a>.<\/p>\n

What do you think about the bitcoin prediction by JPMorgan? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nMarkets and Prices, backwardation, bitcoin bear market, bitcoin futures, bitcoin prediction, Bitcoin Price, Jamie Dimon, jpmorgan bitcoin prediction, jpmorgan ceo, JPMorgan Chase<\/p>\n","protected":false},"excerpt":{"rendered":"

Investment bank JPMorgan Chase has warned of a further bitcoin price decline, expecting an incoming bear market. The bank\u2019s analysts look at the trend in bitcoin futures and see \u201can unusual development and a reflection of how weak bitcoin demand is at the moment from institutional investors.\u201d However, a number of people disagree with this…<\/p>\n","protected":false},"author":0,"featured_media":8211,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8210"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8210"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8211"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}