JPMorgan analysts speak of Bitcoin sales among institutional investors. The bank still stands by its long-term bullish forecast.
As a result of the turbulent crypto market, analysts at the major bank JPMorgan Chase have noticed a turnaround among institutional investors. They would drop Bitcoin and invest their funds in gold instead.
Based on open interest data – i.e. the amount of open options contracts – on the Chicago Mercantile Exchange, the US investment bank speaks of the first major decline in Bitcoin futures trading since the end of 2020. This follows from a memo to JPMorgen customers dated May 18th, the Coindesk is present. It says:
The picture of Bitcoin flows continues to deteriorate, suggesting a continued retreat by institutional investors. Last month, Bitcoin futures markets saw their steepest and most sustained liquidation since the Bitcoin rise began last October.
Bitcoin still on the way to $ 140,000 in the long term
Despite this short-term analysis, JPMorgan is sticking to its bullish January forecast. At the time, the bank predicted that Bitcoin could catch up with gold over the years and be worth more than $ 140,000.
JPMorgan now indicated that this value should be understood as a “theoretical long-term goal”. It would be reached as soon as the volatility of BTC aligns with that of gold and BTC has a similar status in portfolios. If, on the other hand, you put the current volatility of the two assets in relation, the result for Bitcoin would be a fair value (i.e. an assumed actual value) of 35,000 US dollars. This corresponds to a quarter of the targeted 140,000 mark.
It has been known since the end of April that JPMorgan itself is working on an actively managed Bitcon fund. A start date in the summer of this year is considered likely.