1. Home
  2. News
  3. Bitcoin news
  4. How to know if Bitcoin is in a bear market according to JP Morgan

How to know if Bitcoin is in a bear market according to JP Morgan

Photo of: Joseph Stone
by Joseph Stone

There is a lot of speculation about the end of the Bitcoin bear market. When it comes from institutional players like the investment bank JP Morgan, it’s always interesting to take them into account. Let’s take a look at the latest analysis provided by JP Morgan about Bitcoin’s price.

Nikolaos Panigirtzoglou, an analyst at JP Morgan, recently shared his views on the current Bitcoin bear market in an interview with CNBC. For him, one indicator is important to follow. It could tell us when Bitcoin is going to restart its run. But what is this indicator? It is the percentage of Bitcoin’s dominance, or in other words, Bitcoin’s share of the overall crypto market in terms of its capitalization.

“A healthy percentage, in terms of Bitcoin’s share as a percentage of the total cryptocurrency market capitalization, is 50% or more. I think that’s another indicator to watch here to see if this bear market phase is over or not. ” Nikolaos Panigirtzoglou, analyst at JP Morgan

For Nikolaos Panigirtzoglou, this indicator is important because it helps give investors confidence. A dominating Bitcoin is a strong signal to users who feel more compelled to invest in this leading crypto.

Specifically, for the JP Morgan analyst, a sign of vitality would correspond to a Bitcoin that gathers more than 50% of capitalization in the crypto market. At the time of writing, Bitcoin’s market share is only 44%. Since the May 2021 crypto crash, Bitcoin’s share has effectively remained below 50%.

To see a Bitcoin with a capitalization greater than half that of the overall crypto market, you have to go back to late April 2021. If we go back even further, Bitcoin’s dominance was even stronger with percentages approaching 70% in early April 2021.

Bitcoin is still below 50% at the moment. It is interesting to note that the momentum is positive. The market share of Bitcoin has indeed been increasing over the last 4 weeks.