- Sell off will continue to cost bitcoin investors more money as JPMorgan Chase said the most popular cryptocurrency will fall to $25,000
- Bitcoin has been struggling to regain its gains lost since May this year, and that struggle is expected to continue into the year
- The cryptocurrency is expected to undergo more price correction after its long price bubble which started last year until May 2021
Bitcoin investors have been told to expect further crashes in investment valuation as the cryptocurrency market continues to experience price correction.
The warning came from an investment bank, JPMorgan Chase, which said the price of bitcoin will fall as much as 25.2% soon when pegged with the current asking cost.
Josh Younger and Veronica Mejia, analysts at JPMorgan Chase, projected that the price will decline to $25,000 from the current $33,444, according to Coindesk - this means about $8,000 will be wiped off.
Sell off to drag bitcoin price down
The depreciation will be caused by a sell-off among cryptocurrency investors looking to protect their losses or take out their gains from the bitcoin market.
Since the price bubble of bitcoin was deflated by Elon Musk's announcement that Tesla won't be accepting crypto as a payment option again, it has struggled to cross the $50,000 mark.
The asking price has been stuck between $30,000 and $40,000, raising speculation that bitcoin might have reached its price floor as an asset.
But JPMorgan Chase recent statement shows there's still more losses waiting for investors in the short term.
Two South African brothers accused of bitcoin scam
Meanwhile, Legit.ng had reported that two South African brothers, Raees and Ameer Cajee have been accused of scamming bitcoin investors.
Ameer was said to have written to investors informing them that their cryptocurrency exchange platform, Africrypt, was hacked and investment is stolen.
The firm told investors not to alert the police to the issue. Through their lawyer, Raees and Ameer said there's no foundation to support the scam allegations.