JPMorgan is telling clients that getting in to Bitcoin at current prices could have major upside for them down the line. The bank believes bitcoin is undervalued by 28% and has set a price target of $38,000 for the coin, which is currently fluctuating at about $29,000.

"We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds" they wrote.

Last summer, JPMorgan began offering six crypto funds to its wealth management clients, allowing them to diversify their portfolios with bitcoin exposure.

Bitcoin sank below $26,000 for the first time since December 2020 earlier this month.

"We see upside for Bitcoin and crypto markets in general going forward" says strategist Nikolaos Panigirtzoglou.

But the pain isn't limited to crypto, as seen last week when the NASDAQ 's market lost more than Bitcoin. In both cases, inflation fears are being blamed.

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Author: Justin Derbek
New York News Desk
Breaking Crypto News

Get $40 Bitcoin for $20 NOW: Click here!

The market's anxieties about the impact of inflation on the economy were heightened this week by the quarterly results of major retail chains, which showed smaller earnings than expected. This uncertainty was mirrored not only in the department store industry, but also in other sectors of the economy, putting downward pressure on stock prices.

This week's publication of Target's quarterly financial results started the rough week for many NADAQ listed.  The disappointing numbers reaffirmed the trend of consumers focused on spending on essentials like food, and holding off on things like televisions and bicycles. Target's sales and profitability fell short of expectations, and their stock plunged 25% on Wednesday as a result of the earnings decrease, which was even more severe than Walmart's.

The first warning came with Walmart's quarterly financial statements on Tuesday, which revealed a large dip in profits, triggering a stock price slump that began on Tuesday and has yet to stop.

Walmart began the week at $150/share and is ending it at $118.  Target began the week at $220 and is ending it at $152.

The end result (as time of writing) is Bitcoin losing -1.62% this week, and NASDAQ down -3.79%

Bitcoin gets a bounce...

The "realized price" is a well known metric among Bitcoin price analysists, and is calculated by dividing the sum of the values ​​of all coins at the time they were last moved, by the circulating supply. Analysis company Glassnote points out as the 'realized price' approaches, traders buy without hesistation because they believe they can be confident that Bitcoin is undervalused at the moment.  

The current realized price is $24,000, but traders haven't allowed it to get that low - $26,513 is the lowest BTC has gone during the current downtrend. "This may be due in part to the general market awareness of its (realized price) existence" said Glassnode.

"BITCOIN CRASHING. Great news" Rich Dad Poor Dad author Robert Kiyosaki tweeted last week, adding "Once I know bottom is in I back up the truck. Crashes are the best times to get rich."

But don't get excited yet...

We do have enough information where I can say with confidence - this is just another standard dip. One of the larger ones, but the kind we've had before. By that I mean, the kind where we go on to set new all time highs when it's all over. 

So play it smart from here, because the right moves made now will pay off large than those done in a bull market.  You want to ride the trade you make from the bear market, into the bull market.

On that note, if you're newer to crypto and want a simple, low risk way to get those big future payouts. you want to be dollar cost averaging. It's an insanely simple method, and makes it where you don't need to be right about every move you make. Read about it here, or watch a video on it here.

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Author: Ross Davis
Silicon Valley Newsroom
GCP | Breaking Crypto News

We couldn't help reminding JPMorgan of their recent prediction....

5 weeks ago when #bitcoin broke $40k @jpmorgan said it could break $125k!

The following week it dropped to $31k and thats all they needed to turn sour and say it may NEVER pass 40k again.

...it’s $43k now.

LESSON: Old banking / Wall Street experience means nothing in #crypto pic.twitter.com/EfSNcoZBxp

— Crypto Press Association® ✪ (@TheCryptoPress) February 8, 2021

If you're like me you still cringe a little when you read a headline like this, I think I'm still traumatized by Tom Lee, Mike Novagratz, and John McAfee's 2017 appearances on CNBC where they seemingly pulled (ridiculously high) numbers out of a hat and read them on-air as their 'expert prediction' - they repeated this weekly for almost an entire year... then the entire market crashed.

So still take this with a grain of salt - but so far, analyst Willy Woo has correctly predicted the bull run we're in right now, and if his predictions remain true for the next year all Bitcoin owners are going to be very happy.

In the first week of October he stated "In my last update the latest impulse was still forming with an expectation that it would be a bullish buying impulse based on early signs of hidden accumulation being seen on exchanges. This has correctly played out.

We are now coasting upwards with no new changes in the short term on-chain structure. I remain bullish and am awaiting any new changes.

Keen observers will notice there is a bullish supporting trend-line in coin movements forming, which I’ll highlight below." Woo also stated "The next 3 months: Coin supply has dried up while demand dominates."

This was in October - so that 3rd month is right now, and his description of today's market is accurate.

Looking Ahead: Bitcoin at $200,000 by The Beginning Of 2022...

Today's market is strong and could act as the solid launching pad we need to take us to the moon.

The current average price a Bitcoin holder paid is $7,456, which is the average of the different lots of BTC, valued at the price they had the last time they were moved "you're all geniuses" he says, pointing out that the average investor has already doubled their investment.

One Big Reason: A 19% Decline In Bitcoin Being Held On Exchanges...

Investors are taking their Bitcoin off of the exchanges, which means they don't plan on selling anytime soon.

So this really is just the simple law of supply and demand, the supply is getting lower as demand rises, and that always makes prices rise.

This is why he says he's never had bullish sentiment towards bitcoin like today. "It has never been so bullish for 2021. This re-accumulation phase coincides with the decline in BTC's spot inventory, about twice as long and deep as in the last cycle."

The Icing On The Cake:

Woo's BTC price model (if the final numbers and timing are correct) has Bitcoin breaking $80,000 in the next 3 months! 

He also calls the prediction we'll be seeing $200,000 trades for 1 BTC on block explorers soon 'conservative' saying "$300,000 is not out of the question".   

Read Woo's full thread on Twitter here.

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Author: Ross Davis 
E-Mail: Ross@GlobalCryptoPress.com Twitter:@RossFM
San Francisco Newsroom / Breaking Crypto News