JPMorgan maintains its recommendation to be cautious on crypto markets
Investing.com - JPMorgan has advised caution in cryptocurrency markets in the short term.
The bank‘s analysts highlighted factors such as the lack of positive development in the current period and the decline in retail investor interest. In the report released today by JPMorgan analysts, he said that with the lack of positive development and the decline in interest in retail investments, other negative factors highlighted in previous publications remain valid.
In previous reports, JPMorgan has cited reasons such as the fact that Bitcoin is in overbought territory, the widening gap between the estimated cost of issuance and the current Bitcoin price, and the decrease in investment by venture capital firms in the sector. Accordingly, analysts expressed a cautious stance towards crypto markets in the short term.
Analysts, who uated the last two-week period, presented the view that the sales were mainly based on profit taking, and claimed that the sales of individual investors outweighed the sales of institutional investors in this process.
JPMorgan had predicted fall in Bitcoin in previous reports
Not only were outflows from spot Bitcoin ETF seen throughout April, but retail investor interest in crypto-backed equity funds also waned. Institutional investors have also started taking profits from their long positions in Bitcoin and below over the past month, analysts said.
In a crypto note last month, JPMorgan warned that Bitcoin halving is likely to have already been priced in and that there could be a fall in the price of Bitcoin after the halving. In a previous note, analysts predicted that the BTC could fall to $42,000 after the halving, citing the decrease in Bitcoin mining rewards and the increase in cryptocurrency issuance costs.
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