In accordance with JPMorgan, the recent short rally in the price of Bitcoin is not very likely to last long and has warned against the backwardation in BTC over recent weeks. Also, leading market data aggregators suggest a decline in the flagship cryptocurrency following the plunge in altcoins such as Ethereum and Dogecoin. JPMorgan Expects Decline in Bitcoin Since the point of touching the bottom line of $33,472 on Tuesday, Bitcoin has surged around 15% and according to JPMorgan, this rally is highly unlikely to last long. The data has been revealed keeping in mind the shift in the structure of the market signals as it can be witnessed that there is further weakness on the horizon. In a note shared by Nikolaos Panigirtzoglou, a JPMorgan strategist, said: “We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market.” In addition to this, the strategists warned about a Bitcoin crash from over $50K per Bitcoin in the month of May saying: “It is unusual development and a reflection of how weak bitcoin demand is at the moment from institutional investors.” Analysts Indicating at Weakness in the BTC Futures Market The recent boom in the price of Bitcoin and other cryptocurrencies have seen the likes of Ethereum, Cardano, Binance Coin, and Dogecoin. As a result of this, the market dominance of Bitcoin has plunged significantly as it can be seen that Bitcoin’s market share has reduced to 40% from 70% at the beginning of this year. In accordance with the analysis of JPMorgan, the dominance of Bitcoin has to get back its market dominance and share of over 50% so that the bull market can make a return. Lukas Enzersdorfer-Konrad, the Chief Operating Officer at Bitpanda, wrote in an email saying: “When deep-diving into bitcoin’s market corrections, the -49% plunge in May marked the 6th biggest event of this kind, which could be seen as one of the largest monthly corrections in history.”
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