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JPMorgan analysts suggest that there is still room for further decline in Bitcoin's price.
With waning interest in emerging spot Bitcoin ETFs, ten spot Bitcoin ETFs saw their largest three-day outflow since their launch on January 11th. As of March 20th, Bitcoin has retraced over 10% from its all-time high, but JPMorgan strategists caution that there is still room for a pullback.
According to foreign media, from Monday to Wednesday, spot Bitcoin ETFs saw a net outflow of $742 million, driven by fund outflows from the Grayscale Bitcoin Trust and a slowdown in subscriptions to Bitcoin ETF products such as those offered by BlackRock and Fidelity. As of Wednesday, these funds had received net inflows of $11.4 billion, still making them one of the most successful funds in the ETF category. The Grayscale Bitcoin Trust, converted into an ETF, has seen outflows of $13.3 billion.
JPMorgan strategists reiterated their February forecast, stating that Bitcoin "still appears overbought" and warning that there is a downward trend in Bitcoin's price until the halving event in April.
In a report released on Thursday, a team led by JPMorgan strategist Nikolaos Panigirtzoglou wrote that the ongoing decline in open interest in CME Bitcoin futures contracts and the reduction in ETF fund flows are important signals of bearishness in Bitcoin's price.
"The pace of net inflows into spot Bitcoin ETFs has slowed significantly, with significant outflows seen over the past week. This suggests that spot Bitcoin ETFs are unlikely to maintain a consistent trend of net inflows. With the halving event approaching, profit-taking is more likely to persist, especially against the backdrop of what still appears to be an overbought Bitcoin market despite the recent pullback in prices," the strategists noted.
Last month, the bank predicted that after the market frenzy triggered by the April Bitcoin halving event subsides, the price of Bitcoin could decline to around $42,000.
Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, suggests that while Bitcoin reached a near $73,840 all-time high on March 14th, retail investor enthusiasm may be waning.
"Aslam said, 'Many are questioning the strength of this rebound. With the halving event around the corner, if this event fails to truly sustain the upward momentum in Bitcoin's price, it means we are in for a serious pullback, and Bitcoin could drop below $50,000.'" |
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Post time 5-4-2024 21:46:20