The post JP Morgan Believes Bitcoin is Overpriced, Sees Imminent Crash appeared on BitcoinEthereumNews.com.

A report by JP Morgan reveals shocking research. Analysts at the top firm believe Bitcoin is overpriced compared with its production cost($47k) and gold. The report further argues that the rebound in the price of Bitcoin might not be sustained in the near future, implying an imminent crash. Bitcoin recently posted a strong recovery from $53.7k to $67k after the German government completed its sale of $3 billion worth of Bitcoins. However, there is another upcoming selloff in which Mt. Gox users will receive a total of 90,000 Bitcoins. Is Another Bitcoin Crash Approaching JP Morgan has predicted another upcoming crash after Bitcoin recovers to the price level of $67k.  Bitcoin Price Trend in June – July 2024, Source: CoinMarketCap.com  Earlier this month, on 5 July, Bitcoin touched a low of $53,717 due to intense selling by the German government. The government had decided to sell off its entire $3 billion Bitcoin stash that it seized from various sources. Due to the lack of liquidity at that time, the crypto entered a major correction phase.  Bitcoin then recovered to a high of $68,480 on 22 July 2024. At press time, it was trading at $67,622. The report believes the ongoing recovery rally will not be sustained in the near term for three main reasons.  Upcoming Bitcoin Sales by Mt. Gox Users Firstly, the upcoming sales by Mt. Gox users aim to offload a much larger Bitcoin reserved in the market: 90,000 Bitcoins priced at $6.08 billion. This figure is almost twice that of the German government. Report Says Bitcoin is Overpriced The second reason in the report was that Bitcoin was overpriced at its current levels. The report notes that as compared to Gold, Bitcoin should be near $53k, much lower than its current price level, i.e., $67k at press…

---

Filed under: News - @ July 22, 2024 3:32 pm