US banking JPMorgan has maintained a cautious stance on cryptocurrencies, in keeping with its newest report that was printed on Apr. 23.
In keeping with JPMorgan, the cryptocurrency market is at present affected by the dearth of bullish catalysts after ETF inflows dried up.
On the similar time, the financial institution’s analysts cited elevated positioning, underwhelming enterprise capital (VC) funding, and the present manufacturing prices as the principle bearish catalysts contributing to the continuing promoting strain.
Final month, JPMorgan predicted that the Bitcoin halving was priced in, pouring chilly water on some bullish predictions.
Again in February, it mentioned that the worth of the biggest cryptocurrency may crash to as little as $42,000 after the halving occasion. The financial institution additionally predicted that the manufacturing value of a single coin may roughly double. Round that point, Bitcoin bull Mike Novogratz additionally warned that the Bitcoin market was getting frothy.
The value of Bitcoin surged to its present all-time excessive of $73,737 in March and went on to log eight consecutive inexperienced month-to-month candles. Nonetheless, it skilled a dramatic correction in April after which stored plunging in Might as a result of disastrous ETF outflows and macroeconomic considerations. The flagship cryptocurrency is at present buying and selling at $59,110.
In the meantime, JPMorgan CEO Jamie Dimon lately doubled down on his long-standing criticism of Bitcoin, calling the biggest cryptocurrency “a fraud” and a “Ponzi scheme.” He additionally predicted that the flagship cryptocurrency wouldn’t go anyplace as a forex. On the similar time, he nonetheless sees some worth in blockchain expertise.
