April 19, 2024
Bitcoin News

JPMorgan Alert: Bitcoin Pullback Signals Further Declines

Bitcoin, the world’s largest cryptocurrency, has experienced a pullback of over than 10% from its all-time high, with demand for spot Bitcoin exchange-traded funds (ETFs) showing indications of easing. Bloomberg reported on Friday that JPMorgan Chase & Co. analysts have warned that this pullback may have more room to go.

The group of ten spot Bitcoin ETFs has had the highest four-day outflow since the products’ introduction on January 11. Meanwhile, Bitcoin is set for one of its worst weeks this year, with a 4% drop. At the time of writing, BTC was trading at approximately $65,400.

JPMorgan Warns of Further Declines Amidst Halving Event

JPMorgan strategists have reiterated their conviction that Bitcoin remains overbought, repeating a February projection that more falls could occur before the highly anticipated halving event in April. This occurrence will reduce the supply of newly generated bitcoin from miners.

The strategist team led by Nikolaos Panigirtzoglou believes that the continued open interest in CME Bitcoin futures, combined with diminishing ETF flows, are important bearish indications for Bitcoin’s price.

Last month, JPMorgan predicted that the BTC price would gradually decline towards $42,000 after April, as the euphoria surrounding the Bitcoin halving subsides.

Bernstein Prediction

Despite recent losses, investment firm Bernstein has boosted its year-end forecast for Bitcoin to $90,000 from $80,000. Bernstein analysts cited many factors as contributing to their upbeat forecast, including the commencement of a new BTC bull cycle, strong ETF inflows, aggressive miner capacity development, and record-high miner revenues.

In conclusion, while Bitcoin is experiencing a moment of uncertainty and likely future losses, several analysts remain hopeful about its long-term direction, citing factors such as rising institutional interest and good market fundamentals.

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