Major Financial Institution JPMorgan Warns of Potential Bitcoin Price Turmoil on Wall Street
Bitcoin and crypto prices have remained stagnant over the past week, with traders eagerly anticipating an "important" announcement from the U.S. administration, led by Donald Trump. Bitcoin's price is currently hovering under $100,000 per coin, despite Wall Street giant Goldman Sachs placing bets on Bitcoin and Tesla billionaire Elon Musk raising skepticism over the U.S. gold reserve.
Samson Mow, a prominent figure in the Bitcoin industry, has expressed concerns over potential "price suppression" as Bitcoin approaches a so-called "death cross." Mow, CEO of Jan3 and founder of Pixelmatic who played a role in El Salvador's Bitcoin adoption, shared his views at the Consensus Hong Kong crypto conference, according to Cointelegraph.
Meanwhile, JPMorgan analysts have issued a warning about weakening institutional demand for Bitcoin and Ethereum futures, which could negatively impact the crypto market in the near future. If the futures prices were to drop below spot prices, it would represent a worrying development, according to JPMorgan's analysts.
Other crypto analysts are also expressing concern, with one predicting a possible collapse of Bitcoin's price to around $70,000 per coin. Bitcoin's sideways price action comes as the Abu Dhabi $1 trillion sovereign wealth fund made a significant investment in BlackRock's spot Bitcoin ETF, marking the start of a global adoption "race."
BlackRock led the campaign for a spot Bitcoin ETF approval in the U.S., with a wave of Bitcoin funds debuting in 2024 and subsequently experiencing significant growth. U.S. spot Bitcoin ETFs surpassed $100 billion in net assets for the first time last November, led by BlackRock's iShares Bitcoin Trust.
However, the U.S. Bitcoin ETFs experienced net outflows for the first time since early January, while the "fear and greed" index dropped sharply from its November peak. Finance expert Alex Kuptsikevich noted that sentiment in the crypto market is dampening, with few sell-off hunters or counter-trend traders present.
Enrichment Insights:
- Bitcoin and other cryptocurrencies have shown significant volatility in recent days.
- Other cryptos like BGB and JUP are also primed for potential price increases, driven by positive fundamental changes.
- Bitcoin is expected to remain within a consolidated range for a while, potentially leading to a massive breakout towards higher targets, including $100K and potentially even $115K.
- Historical data suggests that Bitcoin often rallies in bull markets, with a 10 out of 12 times rally observed in the past 12 years.
- Key support levels for Bitcoin include $95,000 and $80,000, while potential resistance levels are near $100,000, $108,055.15, and $112,799.30.
- Despite Goldman Sachs and Elon Musk's interest in Bitcoin, its price has remained under $100,000 per coin due to stagnant prices and potential price suppression concerns, as expressed by Samson Mow.
- JPMorgan analysts have warned about weakening institutional demand for Bitcoin and Ethereum futures, which could negatively impact the crypto market, echoing Samson Mow's concerns about potential price suppression.
- Some crypto analysts have predicted a possible collapse of Bitcoin's price to around $70,000 per coin, a significant drop from its current price of approximately 400,000 Hong Kong dollars (around $49,000 USD) as per recent exchange rates.
- Despite these concerns, institutional investment in Bitcoin continues, with the Abu Dhabi sovereign wealth fund making a significant investment in BlackRock's spot Bitcoin ETF, signifying a global adoption race.
