Investors worry about Bitcoin’s inability to surpass $100,000, as JPMorgan analysts note a decline in institutional interest in cryptocurrencies, particularly in futures contracts. The shift towards backwardation indicates hesitance among institutional players, compounded by fading optimism regarding regulatory support. Additionally, suspicions of market manipulation raise further concerns. Currently, Bitcoin trades at $96,180, with long-term projections suggesting potential price ranges between $150,000 and $2 million.

Concerns regarding Bitcoin’s price suppression below $100,000 have emerged, as analysts from JPMorgan highlight a significant decline in institutional interest in the cryptocurrency sector. This downturn particularly affects Bitcoin and Ethereum futures contracts, which have traditionally been pivotal in driving price rallies. Institutional investors previously helped push Bitcoin past the $100,000 threshold, but the asset has since struggled to maintain upward momentum, signaling a potential slowdown in such investments.

JPMorgan’s recent analysis indicates that there is a notable reduction in participation from institutional players, confirmed by the observed trends in the Bitcoin and Ethereum futures markets, particularly on the Chicago Mercantile Exchange (CME). The bank’s research reveals an increasing occurrence of backwardation, where spot prices are higher than futures prices. This unusual market dynamic suggests that institutional investors are exhibiting reluctance due to a lack of immediate bullish catalysts, contrary to healthy market conditions where futures prices typically exceed spot prices.

The report underscores that there is a downturn in demand from systematic and momentum-driven funds such as Commodity Trading Advisors (CTAs), which has impacted Bitcoin and ether futures negatively. Another critical factor contributing to the current market sentiment is the fading excitement surrounding potential crypto-friendly initiatives from the new administration in the United States. It is anticipated that any supportive regulatory reforms will not materialize until the latter part of 2025, leaving Bitcoin in a state of stagnation and profit-taking behavior prevalent in the market.

Furthermore, suspicions of market manipulation have arisen within the cryptocurrency sector, with notable figures like Samson Mow, CEO of Jan3, expressing concerns that Bitcoin’s inability to sustain growth above $100,000 seems “manufactured.” There are allegations that significant market participants are intentionally selling off their holdings, despite retail investors continuing to invest. Historically, Bitcoin’s price has been vulnerable to manipulation, and the influx of institutional investors complicates this scenario, potentially exacerbating the likelihood of such practices.

At present, Bitcoin trades at approximately $96,180, reflecting a 2% decline over the past day. Given the current market dynamics, it appears that Bitcoin may remain in a consolidation phase around the $100,000 mark until at least the second half of 2025. However, analysts project long-term price targets for Bitcoin ranging from $150,000 to $2 million, suggesting potential for significant recovery in the future.

In conclusion, Bitcoin’s ongoing price suppression below $100,000 raises concerns among investors, largely stemming from declining institutional interest and speculation of market manipulation. Analysts from JPMorgan indicate a notable drop in demand and the emergence of backwardation in the futures markets, signaling hesitance among institutional players. Furthermore, the absence of supportive regulatory developments contributes to the limbo of the cryptocurrency market. Despite these challenges, long-term projections remain optimistic, suggesting possible substantial increases in Bitcoin’s valuation in future markets.

Original Source: www.tradingview.com

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