After Elon Musk announced Tesla will no longer be accepting Bitcoin (BTC) as a mode of payment, the cryptocurrency market had been tumbling downwards. Bitcoin touched a low of $30,000 – losing nearly half of its value from its April all-time high of $65,000. The crash has caused panic in the market with investors looking to dump their BTC holdings.
The merits of Bitcoin over gold have been long debated. The king of cryptocurrencies has been oftentimes compared to gold. As the value of digital gold skyrocketed during the bull run of 2021, institutional behemoths turned towards Bitcoin rather than gold. Bitcoin offers a much higher return on investment and the bull run further propelled the returns.
However, such heavy losses cannot be ignored. JPMorgan’s analysts revealed in a note to investors that institutional investors are going back to gold and abandoning cryptocurrencies like Bitcoin. The news may not come as a surprise to many as the sentimental analysis of the market reveals strong fear. The fear and greed index places the market at a score of 11 – with zero as the highest level of fear.
The investment bank also revealed that the Bitcoin futures saw the first biggest decline since the beginning of the bull run. The BTC market continues to suffer with institutional investors withdrawing heavily every day.
Despite the bearish outlook of the market, JPMorgan Chase still maintains its long-term bullish projection for the cryptocurrency. The banking giant predicts that Bitcoin will eventually reach towards $146,000 in the long-term window.
At the time of writing, Bitcoin stands at a price level of $40,310. The price has increased in the past twenty-four hours. The daily trading volume of the cryptocurrency is also moving upwards.