JP Morgan: «If Downward Trend Persists, Bitcoin May Drop To $1250»
As the analyst of one of the largest global banks JP Morgan claim, the cryptocurrency is not backed by anything, and popularity of blockchain technology won’t be able to influence banking business during the following five years.
According to JP Morgan representatives, crytpocurrencies will grow only if investors lose trust to gold, dollar, other financial and reserve tools and global payment systems. They highlight that there are more liquid and complex tools for transactions, investing and hedging even in cases of recession or financial crisis.
In addition, JP Morgan representatives highlight that the use of Bitcoin futures becomes less popular among financial institutions, but, on the other hand, private investors start using them more and more often.
They also highlighted that Bitcoin failed as a payment method – major retailer do not use it as a payment method.
The analysts belive that the first cryptocurrency may drop to $1260 if the bar market persists this year.
Earlier, CryptoPatterns analyst Jon Pearlstone, giving an interview to Forbes, told that the first cryptocurrency would probably reach $5000. But the buyers need to maintain support level of $3500 to make it possible.