Does JP Morgan have a leg to stand on when it talks about Bitcoin?
American Investment bank JP Morgan reiterated its bearish stance on Bitcoin earlier this week, with the firm cautioning its investors following Bitcoin’s price dip. In a newsletter to its clients, the bank projected a dip below $25,000 for Bitcoin, citing the upcoming ‘unlock’ of the Grayscale Bitcoin fund.
Needless to say, these projections haven’t been received well by many in the community. Criticizing JP Morgan as “master manipulators,” analyst Lark Davis shared his opinion on this projection by stating,
“There is not a market they haven’t manipulated … Now that the market is down they’ve of course become very very bearish. They’re putting out bearish predictions, saying that we’re going down to $20-25,000. And of course, at the top they were saying that we were going to go up to $140,000.”
He added,
“Now, if Bitcoin does go down to $25,000, and their initial prediction for $140,000 remains true, then surely you want to buy the $25,000 Bitcoin because we’re going to go up to $140,000.”
Here, it’s worth noting that in a recent tweet, Davis had claimed that while the daily markets were not bullish, it may not necessarily be a bad thing.
In fact, Davis also stressed that buying Bitcoin in these currently bearish times is a good idea as according to him this is “still the wider bullish market.” According to him, the cryptocurrency market is likely to rally in a big way, going forward.
Circling back to the discussion on the effect of Grayscale ‘unlock’ on BTC’s price, Davis argued that as an investor it is something to keep an eye out for.
“A lot of variables here to say that we are definitely going to go down the $25,000,” he said, further making an observation regarding the buying pressure coming into the market whenever BTC has dipped below $30,000 and dips being bought within a short period of time. He added,
“The market is looking weak so if we saw a sell-off from the Grayscale investors, it would not be positive. We would definitely see the prices going down potentially under our previous lows. So maybe $25000 is a possible target.”
He once again cautioned investors about a possible sell-off, claiming that it is something they should have on their “radar.”
OhNoCrypto
via https://www.ohnocrypto.com
Nisha Joshi, @KhareemSudlow
