The crypto-king Bitcoin has fallen by almost half of its peak price of $64,000 in mid-April. Despite temporary ups and downs, the digital currency has yet to recover from the $34,000 mark it traded at in May last week. According to CoinMarketCap data, its share of the crypto market cap has dropped from almost 70% in January this year down to 44% currently.
According to JPMorgan’s cryptocurrency expert, the Bitcoin bear market will continue until its market share reaches more than 50%.
“A healthy number, in terms of bitcoin’s share of the total cryptocurrency market capital, is at least 50%.
Nikolaos Panigirtzoglou (an analyst at JPMorgan) said to CNBC that he believes this is another indicator to monitor in order for us to know if the bear phase has ended. He said that Bitcoin’s low market share was a negative sign indicating a subdued interest.
Experts believe that Bitcoin could reach $100,000 by the end of this year, despite a very difficult period.
CNBC’s Thomas Lee, the Managing Partner and Head of Research at Fundstrat Global Advisors, stated last month that Bitcoin is currently in a difficult spot. The technical picture for the current term is not very good, I believe.
This is in large part due to the crackdown on cryptocurrency usage and mining in China, aside from Elon Musk’s tweets, even though the US legislators are increasing regulatory scrutiny of digital currency.
This correction was long anticipated and is not related to China’s ban on crypto. As Bitcoin’s prices have soared, the correction was anticipated in the past few months.
We have seen Bitcoin move down first, followed by an increase in other coins such as Ethereum and Binance coins. At this stage, the market was searching for negative news that could trigger a rally. China ban seems to be the trigger here,’ Edul Patel (CEO and co-founder of Mudrex) told Financial Express Online.