JP Morgan had something very interesting to say about Bitcoin. Check out what the financial giant believes of the most important digital asset these days.
JP Morgan on Bitcoin
JP Morgan recently stated that Bitcoin is still overbought despite the ongoing correction, as the asset fell in value for much of this week.
Spot Bitcoin ETF inflows have slowed down over this week, while outflows from investment vehicles have increased significantly during the same time frame. The bank predicts that profit-taking could continue into the Bitcoin Halving Event.
Over the past week, the value of several digital assets has decreased. This follows a significant increase led by Bitcoin, and now a market-wide correction is happening. Bitcoin has been leading the way in the decline, with its value down by over 4% in the last seven days.
JP Morgan has expressed its belief that the recent decline in the value of Bitcoin may not be over yet.
According to the bank, Bitcoin is still overbought. In a report initially published by CoinDesk, analyst Nikolaos Panigirtzoglou discussed the cryptocurrency’s current position in the market and its short-term prospects.
“There remains considerable optimism in the market over the prospect for prices rising significantly by year-end,” the bank said.
The statement continued and revealed the following:
“with a significant component of that optimism arising from a view that bitcoin demand via spot exchange-traded funds (ETFs) would continue at the same pace even as the supply of bitcoin diminishes after the halving event,”
However, the bank notes the decline in inflows that those ETFs have faced. Moreover, the outflow data has surged this week.
“This challenges the notion that the spot Bitcoin ETF flow picture is going to be characterized as sustained one-way ent inflow,” the bank wrote.
At the moment of writing this article, BTC is trading in the red and the king coin is priced at $65,850.