JPMorgan Predicts When Bitcoin's Slump is Likely to End

JPMorgan, a leading financial services provider, recently predicted that the Bitcoin's slump will likely be over when the cryptocurrency's market share climbs back above 50%. JPMorgan analyst Nikolaos Panigirtzoglou shared this in an interview with CNBC. 

The world's biggest cryptocurrency has tumbled since May, and its share of the $1.41 trillion crypto market stood at around 46% at the end of Jun with price standing at $34,584, down more than 45% from April's record high of close to $65,000.

"A healthy number there, in terms of the share of bitcoin as a percentage of the total cryptocurrency market cap, is 50% or above. I think that's another indicator to watch here in terms of whether this bear phase is over or not", explained Panigirtzoglou. 

According to Panigirtzoglou, down from the 60% in the beginning of April, Bitcoin's relatively low market share shows a negative signal that suggests interest in BTC remains relatively subdued. However, Panigirtzoglou pointed out that bitcoin's market share had risen in recent weeks.

Last week, another JPMorgan analyst said that the crypto market is healing even though it is not yet healthy. Furthermore, the near-term outlook for the crypto market is "challenging," the analyst added, warning of more sell-offs.

Panigirtzoglou said earlier this month that there was "an unusual development" in the bitcoin futures trend. "We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market," he wrote.

Meanwhile, JPMorgan's CEO, Jamie Dimon, said last month during his congressional testimony before the House of Financial Services Committee regarding cryptocurrency that his personal advice to people is to stay away from bitcoin. Nonetheless, he acknowledged that JPMorgan's clients want exposure to the cryptocurrency.