Nikolaos Panigirtzoglou, a JPMorgan analyst, has shared his views on when he believes the current bear market in bitcoin will end. CNBC interviewed Panigirtzoglou Tuesday to explain that the bitcoin price slump is likely to end once the cryptocurrency’s market share rises above 50%. He explained:
The percentage of total cryptocurrency market capital that includes bitcoin is at least 50%. This is a healthy number. This is another indicator that can help you determine if the bear phase has ended.
The JPMorgan analyst recalls that it was 60% in April. He also said that the low bitcoin market share was a negative sign that indicates that interest in Bitcoin is still relatively low. Panigirtzoglou noted that bitcoin’s market share has increased in recent weeks.
Based on data from Bitcoin.com Markets, Bitcoin is currently at 46%. BTC’s current price stands at $34,609 as of this writing
The analyst at JPMorgan sees no sign that big investors are buying bitcoin. However, he pointed out:
Over the past two-to three weeks, the flow into ethereum has slowed while the flow into bitcoin funds…has improved. This could indicate that institutional investors may see a relative value opportunity to purchase bitcoin and then sell it.
Another JPMorgan analyst stated last week that the crypto market is healing, even though it’s not yet healthy. The analyst warned of more sell-offs and said that the crypto market’s near-term outlook is ‘challenging’.
Panigirtzoglou stated earlier in the month that there had been an ‘unusual development’ in bitcoin futures trends. He wrote that he believes the recent return to backwardation has been a negative sign pointing to a bear-market.
Jamie Dimon, JPMorgan’s CEO and chairman, stated last month in his testimony before Congress regarding cryptocurrency that he would advise people to avoid bitcoin. He acknowledged, however that JPMorgan clients desire exposure to cryptocurrency.