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In recent days, a sharp decline in the cryptocurrency markets has unsettled investors. However, there was a swift recovery in Bitcoin and other cryptocurrencies. Despite this rebound, Bitcoin has still not managed to break through the $70,000 level. Consequently, a cautious approach in the cryptocurrency market has become clearly evident. At this stage, a report regarding the market trend came from JPMorgan.
JPMorgan’s Optimistic Bitcoin Report
According to JPMorgan’s latest report, even after the recent decline in Bitcoin and other cryptocurrencies, the cryptocurrency Bitcoin is still considered to be overbought. JPMorgan’s analysts highlight that the pace of net inflows into spot Bitcoin ETFs has significantly decreased, and there was a notable outflow last week. This indicates that investors are inclined to take profits from Bitcoin.
The bank’s lead analyst, Nikolaos Panigirtzoglou, states that optimism in the market continues and that demand for Bitcoin through spot exchange-traded funds is expected to continue increasing even after the reward halving event. This expectation stems from the belief that demand will persist despite a reduction in Bitcoin supply.
While the reward halving is expected to cut the payments made to miners by half, the next halving is anticipated to take place in mid-April. However, according to JPMorgan, this is unlikely to alter Bitcoin’s overbought status.
Emphasis on Investors Taking Profits
The report notes that the reversal of continuous net inflows into spot Bitcoin ETFs into outflows indicates that investors are in a profit-taking mode. Despite the recent correction, the cryptocurrency Bitcoin is still considered to be in an overbought position. Additionally, analysts in the report believe that the interest in buying Bitcoin will continue unabated until the end of the year.
It is not surprising that reports from major banks emerge from time to time, given the known volatility of the cryptocurrency markets and their unsuitability for everyone. In this context, JPMorgan analysts stating that Bitcoin still maintains a strong position sheds light on the future of the cryptocurrency.
While JPMorgan shared this optimistic report with the market, looking at the Bitcoin price, we see that the price has dropped below the $66,000 level. The flagship of cryptocurrency currencies, BTC, is currently at $65,224.
