Analysts at the major global investment bank, JP Morgan, believes that Bitcoin price could sink further below $1,260, while banks will not benefit from blockchain for at least three to five years, Reuters reports.
The same analysts have, however, estimated that bitcoin’s ‘cost support’ is at around the $2,400 level, and also thinks that the true value of cryptos is still unproven and that they only make sense in a hypothetical “dystopian” event, wherein investors have lost faith in major traditional assets like gold and the U.S. dollar.
The analysts stated in a report:
“Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging [than cryptocurrencies].”
On one hand, the analysts believe that the distributed ledger technology (DLT) has the potential to change the global market by cutting costs for global banks and by digitizing various complex processes.
Though, it was also forecasted that the blockchain technology will take at least three to five years more before making any real impact over the banking sector.
JP Morgan’s CEO, Jamie Dimon, recently said that even though he predicted Bitcoin’s crash, he finds no Joy in Crypto’s Collapse.