A team of JPMorgan specialists, led by senior analyst Nikolaos Panigirtzoglou, published a report that identifies factors posing risks to the cryptocurrency market. These include a decline in interest from retail investors in digital assets, an insufficient level of funding from venture capital funds, as well as uncertainty about further regulation of the industry on a global scale.
“In the absence of positive catalysts, we maintain a cautious stance on the cryptocurrency market in the near term,” JPMorgan noted.
Analysts drew attention to the active sale by retail investors of not only cryptocurrencies, but also shares on stock exchanges and the outflow of funds from spot Bitcoin ETFs. JPMorgan experts emphasize that institutional investors are also participating in profit-taking – this mainly concerns those who have long positions in Bitcoin and other digital coins.
Earlier, JPMorgan analysts said they expected Bitcoin to decline after the halving. Financial corporation specialists made this conclusion after analyzing open interest in futures for the first cryptocurrency.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
