December 20, 2018. The Amercian multinational investment bank and financial services company, JPMorgan Chase believes that the prolonged cryptocurrency bear market is scaring institutional investors.
The interests of institutional investors on bitcoin seems to be “fading”, according to the report of JPMorgan Chase analysts and global market strategist, Mr. Nikolaos Panigirtzoglou. The reason for this is the dramatical downshift of key flow metrics and this includes the “Bitcoin futures market”.
According to the report, Chicago Board Options Exchange (CBOE) global markets are getting declined index of open interest (amount of open contracts on Bitcoin futures). This is lowest levels of index of open interest (IO) has been recorded since the launch of Bitcoin futures on December 10, 2017.
Cryptomarket transaction size was also included and it shows that its average transaction size is now down to $160 from the previous $5000 last year. The crash of the cryptocurrency mining profitability was also touched. It included the dropping of the bitcoin hashrate that made it “no longer economical for many miners”. This forced them to sell their equipment.
Mr. Steve Brazier, CEO of Canalys, a technology research company, is predicting that it will be tough for cryptocurrencies to get back. He said that the recent bear market of bitcoin is a sign of its nearing end. With this in mind, he added that this will also affect the usage of blockchain since without the digital currency (cryptocurrencies), it is just your usual spreadsheet.
Mr. Mike Novogratz, a former Wall Street executive, ex-Goldman Sach’s partner, and founder of crypto merchant bank Galaxy Digital, believes that bitcoin will not go lower than $3,000. He said that there is no more room for the price of BTC to go down and will stay around $3000 to $6000.
It was previously reported here on BitPinas that Philippine banks are interested with the blockchain but not with cryptocurrency. It says that banks are now looking at the blockchain as a way to improve efficiency across their systems. However, they are cautious with cryptocurrencies such as bitcoin, because of its extreme volatility. The price today may not be the price tomorrow.
This article originally appeared on BitPinas: JPMorgan Chase: Crypto Bear Market is Scaring Institutions