Recent reports from analysts at JPMorgan have cast a shadow of doubt over the optimistic expectations many had for Bitcoin following the Halving event. Despite initial enthusiasm, the analysts have warned that a storm may still be brewing for the flagship cryptocurrency. They point to various signals that indicate a potential further downturn in Bitcoin’s price.
One of the key points highlighted by JPMorgan strategists is the recent net outflows recorded by Spot Bitcoin ETFs. This negative trend in net inflow suggests a current bearish sentiment prevailing in the Bitcoin ecosystem. Additionally, the sustained open interest in CME Bitcoin futures is seen as another bearish signal for Bitcoin’s price, according to the analysts.
The JPMorgan analysts also argue that Bitcoin is still considered to be “overbought,” indicating that the price may need to undergo further corrections before any significant upside movement. They predict that leading up to the Halving event in mid-April, Bitcoin could experience further price dips as investors continue to take profits.
Despite Bitcoin exceeding expectations in recent times, JPMorgan’s recent research note reaffirms their bearish outlook on the cryptocurrency’s price. The bank had previously predicted a potential drop in Bitcoin’s price to as low as $42,000 after April as the “Bitcoin-halving-induced euphoria subsides.”
Chief investment officer at Zaye Capital Markets, Naeem Aslam, shares similar concerns to JPMorgan’s analysts. He believes that Bitcoin’s recent rally may not have shown enough strength and predicts a potential fall below $50,000 if the momentum following the Halving event falters. This sentiment is further echoed by other market players who are cautious about the current bullish outlook on Bitcoin.
Crypto trader and analyst Rekt Capital offers insights into what could happen after the Halving event. He explains the four phases of Bitcoin Halving and anticipates a re-accumulation period that could last for up to five months. This period may see investors getting “shaken out” due to various factors, but Rekt Capital believes that this time the re-accumulation could be different as it develops around the new all-time high area.
It is important to note that all information provided in this article is for educational purposes only. It does not reflect the opinions of any specific entity on whether to buy, sell, or hold any investments. Investing always carries risks, and it is recommended that individuals conduct their own research before making any investment decisions. Use the information provided here at your own discretion and risk.
The recent bearish sentiment towards Bitcoin following the Halving event serves as a cautionary reminder of the volatile nature of the cryptocurrency market. While initial optimism may have fueled expectations of a significant uptrend, indicators suggest that further price corrections may be on the horizon. Investors and traders should approach the current situation with caution and stay informed of market developments to make well-informed decisions.
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