The rally in the cryptocurrency market looks overvalued. This follows from a report by JPMorgan Chase analysts published The Block.
The bank noted the high expectations of traders and investors, dictated by a number of factors. Among them, experts identified two main ones:
- the prospect of approval by the US Securities and Exchange Commission (SEC) of spot Bitcoin ETFs;
- softening of the department’s supervisory policy, which stems from the previous paragraph.
However, in both these cases there are certain nuances, the report says. In the first, positive expectations are dictated by a likely jump in the exchange rate and an influx of capital, but the latter is unlikely, JPMorgan Chase notes:
JPMorgan also questioned the possible easing of SEC policy after the approval of this class of products. Experts noted that the industry is still largely unregulated.
Source: Cryptocurrency
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