Bitcoin (BTC) enthusiasts expecting a new peak after the fourth block reward halving may need to adjust their expectations. A recent report from the renowned American bank JPMorgan indicates that Bitcoin has already reached its peak in terms of valuation and transaction volumes.
Obstacles to Bitcoin’s Rise
As known, Bitcoin reached its current peak of $73,737 on March 14 after the successful launch of multiple spot Bitcoin exchange-traded funds (ETFs) in January. Since then, Bitcoin has struggled to maintain this upward momentum. Despite numerous attempts, the bulls have failed to reclaim the $73,000 level. Last week, Bitcoin’s price fell below $54,000, marking a 27% drop and the most significant correction of the current cycle. This underperformance compared to the US stock market is attributed to various bearish factors, including repayments from the Mt. Gox exchange and significant sales by the German government.
JPMorgan’s report also highlights the disappointing performance of spot Bitcoin ETFs, which saw outflows of $662 million in June. This has contributed to the bearish sentiment surrounding the largest cryptocurrency, suggesting that its best days in this cycle may be over.
Positive Long-Term Expectations
Despite these challenges, some analysts remain optimistic about Bitcoin’s future. Tom Lee from Fundstrat reiterated his bullish stance with a price prediction of $150,000. Similarly, world-renowned analyst Peter Brandt believes such a target could be reached by 2025, indicating the potential for significant gains in the coming years.
In addition to these bullish predictions, there are signs that the market may be in recovery mode. On July 8, spot Bitcoin ETFs saw an impressive inflow of $295 million, signaling increased demand and renewed investor interest. This could potentially indicate a shift towards a more positive outlook for the largest cryptocurrency.
According to current data, Bitcoin was trading at $57,702 with a 0.93% increase in the last 24 hours at the time of writing.
