News

JPMorgan: Bitcoin Price Retreat Still Likely To Continue

Key Points:

  • JPMorgan believes that the Bitcoin price retreat will continue as long as the risks persist.
  • Outflows from 10-spot Bitcoin ETFs have reached a peak since their inception.
  • Despite recent record highs, retail trader enthusiasm for Bitcoin appears to be waning.
Bitcoin, the world’s largest cryptocurrency, has seen a significant pullback, declining over 10% from its all-time high amidst a cooling interest in fledgling spot Bitcoin exchange-traded funds (ETFs).
JPMorgan: Bitcoin Price Retreat Still Likely To Continue 2

Read more: Bitcoin Price Prediction For 2024, 2025, 2026 and 2030: Super Crypto Bull Run

JPMorgan Warns Bitcoin Price Retreat Will Continue

According to Bloomberg, JPMorgan Chase and Co. strategists have cautioned that this Bitcoin price retreat may have further room to unfold.

The group of 10-spot Bitcoin ETFs experienced its most substantial three-day outflow since their debut on January 11. Currently, Bitcoin is poised for one of its toughest weeks this year, with a 4% dip, trading at $65,500 at the time of writing.

JPMorgan strategists reiterated their view that Bitcoin appears overbought, issuing a February forecast for a potential Bitcoin price retreat leading up to April’s highly anticipated halving event, which will reduce the supply of newly minted Bitcoin.

Furthermore, sustained open interest in CME Bitcoin futures, coupled with declining ETF flows, signals bearish sentiment for Bitcoin’s price, as noted by strategists led by Nikolaos Panigirtzoglou in a Thursday report.

Read more: Have You Ever Lost Bitcoin? What Does This Mean?

Retail Trader Enthusiasm Wanes Amidst Resurging Dollar

Despite reaching a record high of nearly $73,800 on March 14, retail trader enthusiasm for Bitcoin may be dwindling, suggested Naeem Aslam, chief investment officer at Zaye Capital Markets.

The recent weakness in Bitcoin’s price action could be attributed to the resurgence of the U.S. dollar following a surprise interest rate cut by the Swiss central bank, reversing Wednesday’s steep drop despite Federal Reserve Chair Jerome Powell’s dovish tone amid higher-than-expected inflation readings.

In contrast, Bernstein raised its Bitcoin price target to $90,000 by year-end, up from the previous forecast of $80,000, according to a Thursday research note.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Crypto Advisory Council Now A White House Position Attracting Leaders

Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…

15 minutes ago

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

46 minutes ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

48 minutes ago

MicroStrategy Convertible Notes Now Out of Stock With $3B Raised

The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…

1 hour ago

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

5 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

8 hours ago

This website uses cookies.