Cryptocurrency markets underwent a sharp correction last week. This is because the price of bitcoin (BTC) fell more than 15%. He later recovered after the meeting of the Federal Open Market Committee (FOMC) on Wednesday.
This way, the sale may not have ended. This is because the position still appears to be overbought, said the JPMorgan (JPM) in a research report on Thursday.
“There remains considerable optimism in the market about the prospect of significant price increases by the end of the year, with a significant part of this optimism arising from the view that demand for bitcoin via exchange-traded funds (ETFs) would continue at the same pace, even with the decrease in bitcoin supply after the halving event”wrote analysts led by Nikolaos Panigirtzoglou.
The quadrennial reward halving is when miner rewards are halved. Therefore, the next halving is expected in mid-April.
However, the bank notes that the pace of net inflows into spot bitcoin ETFs has slowed considerably, with a significant outflow recorded last week.
“This challenges the notion that the flow of spot bitcoin ETFs will be characterized as a sustained, unidirectional net inflow.”the authors wrote.
“In fact, as we get closer to the halving event, this profit-taking is more likely to continue, especially against a positioning backdrop that still looks overbought despite last week’s correction.”the report said.
Source: Atrevida
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
