Since the price of Bitcoin (BTC) did not hold its breath above $ 35,000 yesterday, JPMorgan expects an overall bearish move below the critical price level based on Bitcoin’s volatility in relation to gold.

In a note sent to investors on Wednesday, JPMorgan explained why bitcoin’s fair value over the medium term is between $ 23,000 and $ 35,000. The banking giant had previously planned a $ 140,000 plan if the largest cryptocurrency matched the gold distribution and volatility profile.

But that’s out of the question for the foreseeable future, according to a note from JPMorgan, which predicts that “full convergence, equalizing volatility or distribution [between gold and bitcoin] is unlikely for the foreseeable future.”

JPMorgan also said that China’s anti-mining action will have a positive impact on Bitcoin over the medium term, “because it accelerates the move away from China’s high share of Bitcoin hash rate, which is diminishing the focus.”

Not many organizations join the MicroStrategy hunt to buy a dip. “More than a month after the cryptocurrency crash on May 19, bitcoin money continues to bleed, even as flows to the actual gold ETFs have stalled,” JPMorgan said, adding:

“This indicates that institutional investors, who tend to invest through regulated media such as bitcoin-listed funds or CME bitcoin futures, remain reluctant to buy bitcoins.”
RELATED: Bitcoin Price Falls Below $ 34,000 As BTC Open House Day In Grayscale Approaches

Another major stumbling block to the potential rally is the end of the six-month closure of the Grayscale Bitcoin Trust, which totaled nearly $ 4 billion in December and January, according to JPMorgan. As Cointelegraph reports, July 19 will be the most important day to unlock, with 16,000 bitcoins being issued, worth about $ 627 million.

After a record high in April, Bitcoin has hovered between $ 30,000-40,000 over the past two weeks. According to data from Cointelegraph Markets Pro and TradingView, after the price of BTC fell below $ 29,000 on June 22, the price changed by about $ 34,000.

Source: CoinTelegraph