In cryptoland, Bitcoin-at-$100,000 calls are rampant. On Wall Street, not really. Just 5% of customers surveyed by JPMorgan Chase and Co. said they see the digital coin coming to $100,000 before the end of 2022. Over 40%, however, saw it above $60,000, where it was around two months prior before it initiated its most recent stretch of decays. On Monday, Bitcoin lost as much as 6.3% to exchange beneath $40,000 before bouncing back above $41,000.
“Our Bitcoin-position indicator based on Bitcoin futures looks oversold.” He added that the coin’s fair value is between $35,000-$73,000, depending on what investors assume about its volatility ratio versus gold.
“I’m not surprised by Bitcoin bearishness,” said Nikolaos Panigirtzoglou, a strategist at the bank and an author of the research note that included the survey.
The largest digital asset by market value has dropped about 40% since reaching a high of almost $69,000 in November. Still, even amid the turbulence, many analysts have said they foresee it going to $100,000 in the new year.
The latest stretch lower in crypto is happening as odds rise that policy makers could commence a series of rate hikes as soon as March — and that’s just one of several steps they’re set to take in removing liquidity. In such an environment, speculative investments lose their luster.
That may well happen — the coin has an ability to shock disbelievers time and again, though market-watchers agree that the path to that threshold may be rougher with a more-hawkish Federal Reserve.
The Bloomberg Galaxy Crypto Index has lost roughly 13% to start the year, while Bitcoin has notched its worst start to a new year since its earliest days.
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