In a note sent to investors on Wednesday, JPMorgan detailed its reasoning for seeing Bitcoin’s fair value between $ 23,000 and $ 35,000 over the medium term. Likewise, it is detailed that the recent decline in Bitcoin may take time to recover. Since JP Morgan argued that institutions do not intervene and buy in the fall of Bitcoin.
The banking giant previously envisioned a $ 140,000 roadmap. If the largest cryptocurrency matches the gold allocation and volatility profile.
But that is off the table for the foreseeable future, according to the JP Morgan note, which predicts that “full convergence or equalization of volatilities or allocations is unlikely in the foreseeable future.”
JP Morgan also said that China’s crackdown on mining operations would have a positive impact on Bitcoin in the medium term. “As it accelerates a shift away from China’s high share of the Bitcoin hash rate, reducing concentration.”
“The crackdown on mining operations in China should be viewed as positive for Bitcoin in the medium term as it accelerates the shift away from China’s high share of the bitcoin hash rate, reducing concentration.” JP Morgan said.
The bank sees Bitcoin’s recent decline as more of a continuation of weak flows and price dynamics, rather than attributing it to China’s mining crackdown. And the weak flows suggest that institutions are not stepping in to buy bitcoin’s plunge at current levels.
According to JP Morgan, another important factor preventing a possible bull run is the end of a six-month lockdown period for the Grayscale Bitcoin Trust fund. That posted an inflow of nearly $ 4 billion in December and January.
Tanzania’s central bank could overturn Bitcoin and cryptocurrency ban after presidential endorsement
The Bank of Tanzania would be working to revoke its ban on cryptocurrencies. Amid favorable comments on cryptocurrencies made by the president of the country.
According to ., Tanzania’s central bank has begun work on directives from the country’s federal government that could see a revocation of its November 2019 cryptocurrency ban.
At the time, Hassan directed the Bank of Tanzania to stay current, given the growing popularity of cryptocurrencies.
These favorable comments on cryptocurrencies came in the immediate aftermath of El Salvador’s Bitcoin Law. And, a wave of positive BTC sentiment in various Latin American nations.
Japan warns Binance Exchange about licensing
In a statement released by the Financial Services Agency on Friday, the agency confirmed Thursday’s news that suggested Binance was about to be warned by the financial watchdog given its failure to register with the regulator.
However, the statement does not imply whether the regulator is weighing criminal charges, as noted in Nikkei’s previous report. The exchange told Bloomberg earlier this year that it was working with Japanese regulators to obtain a license.
In response to the FSA statement, Binance CEO Zhao Changpeng confirmed receipt of the warning letter. And, he stated that the firm’s legal team is in dialogue with the agency.
The President of El Salvador has announced that the government will send $ 30 worth of Bitcoin (BTC) to every adult citizen of the country. The announcement was well received by Bitcoiners: Influencers speculate that the government of El Salvador will need to purchase the required BTC that it intends to distribute. This will add more than $ 100 million in buying pressure in the markets. Athena reports that it will install some 1,500 Bitcoin ATMs in El Salvador, as announced by the Athena team today. According to information released by various media. It is indicated that, with this and other measures, they are preparing to make a wide deployment of operations in El Salvador, for which they also plan to open offices in the country and have everything ready before September 7 of this year, at which time the new Bitcoin law comes into force.