Bitcoin Is Having A Dip After ATH. Is $ 58,000 High For BTC?
On Feb 22, 2021
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People got a chance to buy BTC below $ 58,000 while it’s dipping. JP Morgan strategists propose that Bitcoin marketed above its fair value range.
After hitting a record high price, Bitcoin is experiencing a dip. It is considered an opportunity for investors to buy Bitcoin before it is too late. There is a strong bullish sentiment in the market, and the price will not stay below an all-time high price. It is the perfect time for people who missed a chance to buy Bitcoin, considering the price can increase dramatically during the day.
However, Bitcoin is not the only cryptocurrency experiencing a price decrease. Top cryptocurrencies display red candles since morning. The market capitalization of Polkadot and Cardano went below Tether USDT after a few days being up.
At the time of writing, Bitcoin was traded at $ 53,723. It is 6% below the ATH price of $ 58,330. The lowest price was around $ 52,700.
Bitcoin ETF Stats in Canada
The world’s first Bitcoin ETF in Canada displays some great stats since it started trading. Asset under the management (AUM) of the fund reached $ 421,8 million in two days. This record proved the popularity of Bitcoin as an ETF in North America. Senior ETF analyst for Bloomberg, Eric Balchunas, mentions in his tweet that it can reach $ 1 billion in assets at the end of next week. He mentions that the biggest ETF in Canada is only $ 8 billion, and the second biggest is $ 5 billion. ‘I wouldn’t be surprised if this passes one or both of them in the next couple of months.’
These kinds of financial instruments can play a significant role in the adoption of Bitcoin by the masses. It can encourage people to invest in Bitcoin after getting a profit on their ETF.
JP Morgan Analysts on Bitcoin
In the Bitcoin report, JP Morgan analysts reported the ongoing activities about Bitcoin. There were some interesting thoughts about Bitcoin. They state that millennials’ interest will continue in Bitcoin as they think that BTC is ‘digital gold‘ and an alternative for gold. According to the report, a “$ 25k price equalizes Bitcoin with gold in risk capital terms could be considered an upper bound of its fair value range.” This statement means that Bitcoin is currently overvalued. The price they put on Bitcoin is more than 2 times less than the actual value of Bitcoin.
They think that $ 11k is lower bound for Bitcoin because of mining costs. In the report, institutional investments were the main topic too. The investments of Tesla and Grayscale affected the price of Bitcoin positively.
Previously, JP Morgan made a theoretical price target of $ 146k for Bitcoin. Here they mentioned that to reach that price level, institutional investors will play an important role.
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Disclaimer: All information provided in the content is for informational purposes only and should not perceive as investment, financial, or trading advice. Any investment decision you make should be a personal choice based on financial knowledge, experience, and market research.