Banking behemoth JPMorgan expects Bitcoin to remain under pressure in the near future, CNBC reports.
On March 2, the price of Bitcoin surged to $95,000 after it was confirmed that the leading cryptocurrency would be at the heart of the recently announced cryptocurrency reserve.
However, it has since pared all of its gains and plunged below the $82,000 level within two days.
Earlier this Thursday, Bitcoin surged to an intraday high of $92,790 before giving up some gains.
As reported by U.Today, the banking giant correctly predicted a Bitcoin correction in late February.
Skepticism surrounding the crypto reserve
In a recent note, Nikolaos Panigirtzoglou, a managing director at J.P. Morgan, has noted that some are skeptical about whether or not the crypto reserve initiative will actually manage to gain congressional approval.
Moreover, he mentioned that it is not clear how feasible it will be to include tokens such as XRP and SOL in the reserve given how volatile they are.
Panigirtzoglou also pointed to the fact that various state-level efforts to introduce strategic Bitcoin reserves have failed miserably even in conservative states such as South Dakota.
Waning institutional demand
Panigirtzoglou has noted that institutional investors have seemingly reduced their positions. According to JPMorgan, the lack of bullish catalysts has led to waning momentum.
More position unwinding could take place in the near future, according to the analyst.
JPMorgan has also noted that it is now more challenging for MicroStrategy to raise debt due to investors demanding better terms.
Dan Burgin
Vladislav Sopov