The bitcoin market has begun a “recovery” process. This conclusion was made by JPMorgan analysts in their new report, writes Bloomberg . Despite the fact that bitcoin is still far from the highs, cryptocurrencies are gradually recovering from the crash.
For example, JPMorgan strategists called the lack of activity in the bitcoin futures market a “positive factor.” According to ByBt, after the fall in the price of bitcoin on May 19, the futures market stopped giving in to volatility.
“The cryptocurrency market is not yet completely healthy, however, the healing process has already begun ,” said analysts Josh Younger and Veronica Mejia Bustamante.
At the time of this writing, the total open interest in bitcoin futures is $ 11.4 billion.
However, the short-term outlook, according to strategists, is extremely “difficult”. In particular, experts refer to on-chain data. They confirm that traders were selling coins to cover losses. Analysts also believe that the market still has “underwater positions” that the market should get rid of. However, it is unclear at what level BTC should reach for a complete “healing”.
Earlier, JPMorgan predicted a further drop in bitcoin. For example, the bank said that the fair value of bitcoin in the medium term is estimated in the range of $ 23,000 to $ 35,000. Moreover, experts believe that a possible sale of shares of the Grayscale Bitcoin Trust will increase pressure on the price of the cryptocurrency.
Investments in cryptocurrency in India grew by 20,000% in 1 year
One of the markets where the competition between bitcoin and gold is most pronounced is undoubtedly India, where the precious metal has traditionally been invested.
Indian households are believed to own over 25,000 tons of gold, although bitcoin has also entered the country recently .
According to Chainalysis, over the last year alone, investment in cryptocurrency in the country has grown from about $ 200 million to nearly $ 40 billion, which means a 20,000% increase.
Most surprisingly, however, this incredible increase came despite numerous efforts by the country’s government and central bank to prevent, if not outright ban, investment in cryptocurrencies.
Thus, on the one hand, there are traditional institutions trying to convince citizens not to invest in bitcoin , on the other hand, more and more citizens prefer to invest in bitcoin and cryptocurrencies.
There are now more than 15 million crypto investors in the country, which is less than 23 million in the US, but more than 2.3 million in the UK. However, with a population of over 1.3 billion, the proportion of Indians working in the cryptocurrency markets is still very low at 1%.
Of those 15 million, the millennial generation is the largest, particularly Indians under 35, who are less attracted to gold than previous generations, according to the World Gold Council. They are also less risk averse.
It is worth noting that the size of the Indian crypto market is still tiny compared to the size of gold, but the upward trend is clear, especially after the ban was declared unconstitutional last March.
In addition, many Indian gold-holding families may be interested in experimenting with new investment opportunities, especially if they are convinced that they can generate high returns.
It is known that due to their volatility, cryptocurrencies can indeed bring large profits in a short period of time, and without much effort.
Another factor that makes some Indians prefer bitcoin over gold is the ease of buying BTC. On many crypto exchanges and P2P platforms, investors can make purchases without having to go through verification .