Bitcoin (BTC) enthusiasts anticipating a new peak following the fourth block reward halving might need to temper their expectations. A recent report by American banking giant JPMorgan suggests that Bitcoin has already hit its peak in valuation and transaction volumes.
What Are the Obstacles to Bitcoin’s Rise?
Bitcoin reached its current apex of $73,737 on March 14, following the successful launch of multiple spot Bitcoin exchange-traded funds (ETFs) in January. However, maintaining this upward trajectory has proven difficult. Despite numerous attempts, the bulls have failed to reclaim the $73,000 level. Last week, Bitcoin’s price plummeted below $54,000, marking a 27% drop and the most significant correction of the current cycle. This underperformance compared to the US stock market is largely due to bearish factors such as repayments from the Mt. Gox exchange and substantial sales by the German government.
JPMorgan’s report also emphasizes the lackluster performance of spot Bitcoin ETFs, which experienced outflows of $662 million in June. This has exacerbated the bearish sentiment surrounding the leading cryptocurrency, indicating that its best days in this cycle might be behind it.
Why Are Analysts Still Optimistic?
Despite these obstacles, some analysts continue to hold a positive long-term outlook for Bitcoin. Tom Lee from Fundstrat has reiterated his bullish stance with a price forecast of $150,000. Similarly, renowned analyst Peter Brandt believes this target could be achieved by 2025, suggesting potential for significant gains in the coming years.
Valuable User Inferences
- The current bearish trends may be driven by external factors such as large-scale sales by governments and specific exchange-related issues.
- Despite short-term setbacks, some experts predict substantial long-term gains for Bitcoin.
- Increased inflows into spot Bitcoin ETFs could signal renewed investor interest and potential market recovery.
In addition to these bullish predictions, signs of market recovery are emerging. On July 8, spot Bitcoin ETFs saw a notable inflow of $295 million, indicating heightened demand and renewed investor optimism. This could signal a shift towards a more positive outlook for the leading cryptocurrency.
According to the latest data, Bitcoin was trading at $57,702 with a 0.93% increase over the last 24 hours at the time of writing.