Should Beijing look at its crypto ban? A former bank member believes so
A former member of the Monetary Policy Committee at the People’s Bank of China believes the ban on China should be reconsidered.
Bitcoin price has been struggling to find and maintain anything above $35,000 USD, sitting just above $33,000 USD at the time of writing. In response to the bearish downturn after a few months of weak trading, JPMorgan analysts are anticipating a bearish movement in the market based on Bitcoin and gold volatility ratio.
The bank released a note detailing how and why it suggests that cryptocurrency trading might hit a roadblock, which won’t be attractive to new and current institutional traders. JPMorgan sees fair value of the cryptocurrency over the medium-term range sitting between $23,000 USD and $35,000 USD – a low point based on the currency price. As a result, the bank says that “full convergence or equalization of volatilities or allocations [between gold and bitcoin] is unlikely in the foreseeable future.”
In April, Bitcoin saw a fall from trading at an all-time high to sit at nearly 50% of the value it had seen. Part of this could be attributed to investors trading out to profit, as well as China’s harsh restrictions on the market. The bank noted that this dip, usually attractive to active traders, hasn’t been enticing investors: