JPMorgan Warns of Continued Selling Pressure on Bitcoin Due to Overbought Positioning Despite Recent Price Decline and Halving Approaching

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Despite recent drops in its price, Bitcoin remains overbought, according to JPMorgan, a major investment bank. JPMorgan thinks more people might sell Bitcoin because its price has dropped and the halving event is coming up. People who own a lot of Bitcoin might want to sell some. They believe that even though people are still interested in Bitcoin, its price could keep going down.

This means that even though many people want to buy Bitcoin, there are also plenty of others who might want to sell, leading to a balance or even a surplus of sellers over buyers. JPMorgan’s warning about Bitcoin’s popularity and potential for more selling as the halving approaches suggests continued downward pressure on its price despite recent declines.

JPMorgan’s Caution Regarding Bitcoin ETF Flows

JPMorgan warned that recent slowdowns in Bitcoin exchange-traded fund (ETF) inflows dampen hopes for year-end price increases. People were optimistic about prices rising due to steady demand from ETFs and the upcoming halving event. However, recent data shows ETF fund flows might not be as consistent as expected.

Despite a period of heightened investment activity over recent weeks, last week marked a downturn for 10 Bitcoin ETFs, as they experienced a decrease in capital inflows.

JPMorgan analysts think that with the halving event coming up, some investors might decide to sell their Bitcoin holdings to lock in profits. This is happening even though the market is already considered overbought and despite a drop in prices last week. The situation is a bit confusing because it shows that various factors are influencing how investors behave in the unpredictable cryptocurrency market.

JPMorgan’s Caution and Skepticism on Bitcoin’s Future

JPMorgan recently warned that Bitcoin’s price could drop to $42,000 after the upcoming halving in April. They don’t think the halving or Ethereum’s upgrade will have a significant impact, as the market has already considered these factors. Global strategist Panigirtzoglou said it’s unlikely for Bitcoin to become as popular as gold among investors. JPMorgan’s CEO, Jamie Dimon, who doubts cryptocurrencies, emphasized that he personally wouldn’t invest in Bitcoin.

JPMorgan is cautious about Bitcoin, suggesting it might not be as good as gold. They warned its price could drop after a halving event. Their CEO and strategist are skeptical, which might make investors unsure. This could push Bitcoin’s price down.


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