Bitcoin Crash 2021: Analysts are warning that bitcoin’s crash hasn’t started yet. We’re still in the early stages
Just last week, a group of JPMorgan analysts and strategists led by Nikolaos Panigirtzoglou warned that Bitcoin’s latest correction may not be over. In the past 24 hours alone, bitcoin has fallen roughly 8% over the past 24 hours, according to Coindesk, and was trading near $33,200 at 4:45 a.m. ET on Tuesday.
While many crypto investors may see the $32,000 price as a buying opportunity, JPMorgan strategists forecasted that the price of the digital asset may still drop further in the short term. In the mid-term, however, Panigirtzoglou and his team predicted that Bitcoin could drop even further to $24,000. In a note to their clients, the group wrote:
“The fair value for bitcoin based on a volatility ratio of Bitcoin to gold of around x4 would be 1/4th of $145k or $36k. The fair value for Bitcoin based on the current volatility ratio of Bitcoin to gold of around x6 would be 1/6th of $145k or $24k. We thus see a fair value range of $24k to $36k over the medium term.”
If JP Morgan forecast were accurate, it means bitcoin would fall by another $7,000 from its current price of $31,604.20 as of the time of writing (11:15 AM New York Time)
JP Morgan analysts are not alone. Other analysts also have warnings for crypto investors–get ready because it’s going to be a bumpy ride, adding that bitcoin’s terrible run isn’t over yet. Jeffrey Halley, senior market analyst for the Asia Pacific at Oanda said that the sell-off could worsen if bitcoin prices fall below $30,000.
In a Tuesday research note to clients, Halley wrote that breaking below the $30,000 barrier would “basically put every long position since January 1st in the red, which I believe, will trigger another capitulation trade.”
Many cautioned that Elon Musk’s influence on bitcoin may not be good for cryptocurrency in the long run. For example, bitcoin’s value sank on Friday after tweeted a meme with a broken heart that appeared to express the end of his relationship with the cryptocurrency.
Meanwhile, our friend Patrick Shyu, an Ex-Google Tech Lead and Ex-Facebook Software Engineer, outlines in the video below three top primary ways cryptocurrency could crash and what you need to be aware of.
For some of our readers who may not be familiar with Shyu, we wrote about him last month after he sold all his bitcoins. Just like the Bank of England warned crypto investors, Shyu is now warning naive crypto investors about the risk of cryptocurrencies and the Tether scandal.
Enjoy the video.