JP Morgan says Bitcoin might sink below $1,260

24 Jan, 2019 | Updated: 24 Jan, 2019
by Joeri Cant
Bitcoin
JP Morgan says Bitcoin might sink below $1,260

Analysts at the major global investment bank, JP Morgan, believe that Bitcoin could fall below $1,260, as cryptocurrency values remain unproven, adding that banks will not benefit from blockchain for at least another three to five years.

JP Morgan analysts told Reuters that it was skeptical of the value of cryptocurrencies, suggesting that crypto assets would only make sense in a dystopian scenario where investors have lost all faith in gold, the dollar, other major reserve assets and the global payments system.

'Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging', the analysts said.

Read more: Pros are leaving the Bitcoin market, JPMorgan says. More crypto FUD?

JP Morgan’s analysts further suggested that Bitcoin is likely to have cost support at around $2,400, but could just as well fall below $1,260 if the current bear market persists.

JP Morgan's CEO, Jamie Dimon, recently said that even though he predicted Bitcoin’s crash, he finds no satisfaction in prices dropping 80 percent from the peak.

He told CNBC’s Squawk Box, that he does not really care about the cryptocurrency.

When he was asked if he took any satisfaction in being right after Bitcoin dropped 80%, Dimon made it clear that he did not. He stated that multiple media outlets have over-reported his sceptical comments and he argued that he had not intended to become the spokesperson against the biggest cryptocurrency.

In December 2018, one of JP Morgan’s former executives, Alex Gurevich, argued that Bitcoin is increasingly becoming digital gold.

He believes that although the development of various altcoins and forks has risen and fallen, time is good for Bitcoin.

'Despite the rise and fall of various altcoins and fork considerations, ’time’ works FOR Bitcoin, not AGAINST it. Every day it doesn’t disappear, it gets one step closer to a permanent status of digital gold', Gurevich said.

Read more: "Bitcoin is becoming digital gold, if it doesn't die" says Ex JPMorgan Exec

The number one cryptocurrency is currently trading at $3,610, up 0.68% in the past 24 hours, acording to coinmarketcap.com.

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