Since the steep price correction that occurred on May 19th, Bitcoin and several other crypto assets have been striving to reach new all-time highs. Contrary to what many expected, the flagship cryptocurrency has been unable to reach the $40,000 region and was only seen to rise as high for a brief period.
The price of BTC was noted to be just above $30,000 this week, before El Salvador’s initiative to adopt Bitcoin as a legal tender. Since the passing of the Bitcoin bill in El Salvador, a slight surge was noticed in the Bitcoin’s price, which was encouraging for many BTC investors.
Here is a graph by CoinGecko, showing the fluctuations in BTC’s price before and after the above-mentioned Bitcoin bill.
However, JP Morgan, the investment banking company, has a different perspective. According to the recent price alert shared by JP Morgan, BTC and other cryptocurrencies are likely to experience another price drop.
Previously, the decline in BTC’s price was used as an opportunity by BTC Whales who made big investments in the crypto asset. This can indicate the same if the price of the crypto asset decreases once again.
Therefore, if you are also looking for an opportunity to invest in the flagship crypto asset then you can use secure exchanges such as SwissBorg or Kraken and safely purchase it. On the other hand, if you are a novice trader and do not have much expertise in crypto trading then you can use PrimeXBT Covesting, which is one of the safest exchanges for beginners.
How Have Other Altcoins Been Affected?
Despite the surge in BTC’s price, it is still unable to break through the $40,000 resistance. However, Bitcoin is not the only digital asset that has seen the low in the last week.
According to reports, there has been a decline between 5% to 10% in the prices of the top altcoins this week. These cryptocurrencies include:
- Binance Coin
Considering the decrease in BTC’s price and that of the altcoins mentioned above, the analysts at JP Morgan have warned that a possible bearish momentum could be just around the corner.
The strategists at JP Morgan wrote:
“We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market,”
The analysts also pointed out the weakness in BTC future markets and stated that it resembled the bear market in 2018. The decline in Bitcoin back then significantly impacted the entire crypto market and was labeled as “crypto winter”.
According to expert analysis, the dominance of Bitcoin has also reduced, which has fallen from 70% to slightly above 40%. The JP Morgan analysts are of the view that BTC needs to regain at least 50% dominance before a bullish momentum can be observed for the crypto asset.
Should You Be Worried as a Potential or Existing Investor?
The volatility of the crypto market is not news for long-term crypto investors and traders. The fluctuation in prices has been witnessed several times over the years, which is why long-term investors were adamant in hodling their BTC despite the drastic drop in its price.
The possibility of another decline has been shared by the expert strategists at JP Morgan. Even though the decline has not been seen in real life so far, many are left to wonder if they might witness it soon enough.
Investing in cryptocurrencies or becoming a trader has its challenges as well as benefits. Therefore, if you have been planning to step into the crypto space you should take your time and use good and secure exchanges so you can make the right decision for your funds.
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