The sudden decline in the cryptocurrency market in recent days has discouraged investors. Still, Bitcoin and other cryptocurrencies surged sharply. Despite this recent surge, Bitcoin has not yet succeeded in crossing the $70,000 mark. As a result, it is now quite clear that the Bitcoin market should proceed with caution. JP Morgan released a report regarding the state of the market at this point.
JPMorgan’s buoyant Bitcoin analysis
Despite the recent decline in Bitcoin and other cryptocurrencies, the cryptocurrency Bitcoin is still considered overbought, according to the most recent analysis from JP Morgan. JP Morgan said in a research report Thursday that a selloff cannot be made as positions appear to be overbought.
Nikolaos Panigirtzoglou, the bank’s chief analyst, said optimism was still present in the market. Additionally, he estimates that the market for Bitcoin will continue to grow through exchange-traded funds. This is even after the reward halving incident. This anticipation is based on the belief that there will be demand for Bitcoin even in the face of a reduction in supply.
The halving of miners’ rewards occurs during the quadrennial rewards halving. However, JP Morgan believes this is unlikely to change Bitcoin’s overbuying situation.
Emphasis on traders to earn profits
According to the data, net inflows into spot Bitcoin ETFs have turned into outflows, showing that investors are making profits. Despite the recent downturn, the cryptocurrency Bitcoin is still considered overbought. The analysts of the report also believe that there will be no decrease in enthusiasm to buy Bitcoin by the end of the year.
Given the well-known volatility of cryptocurrency markets and the fact that they are not suitable for all users, the assessment of major banks is not a surprise. The statement made by JP Morgan experts that Bitcoin is still in a solid position in this setting provides information about the future of the cryptocurrency.Even though JP Morgan released this upbeat report on the market, the Bitcoin price has fallen below the $66,000 threshold. The leading cryptocurrency Bitcoin is currently valued at $64,385.
