JP Morgan anticipates what will happen to bitcoin between now and the halving
The financial company provides its projections for the digital asset market.
For JP Morgan, bitcoin remains "overbought."
Profit taking could continue for approximately another month, the company says.
The largest American multinational bank, JP Morgan, maintains that bitcoin (BTC) does not yet look ready to return to the rise. This was stated by its analysts led by global market strategist Nikolaos Panigirtzoglou in a note sent to the press.
The coin is trading 10% below the all-time high (ATH) price it reached last week around $73,700 (USD). Reaching such a level was driven in part by sustained demand for bitcoin exchange-traded funds (ETFs) launched two months ago in the United States. But, a change in this panorama leads to regression.
“The pace of net inflows into spot bitcoin ETFs has slowed noticeably, with significant outflows occurring so far this week,” JP Morgan noted. They mention that this reflects profit taking due to the rise in price (measured in dollars) that the currency experienced.
In fact, as seen below, such bitcoin investment products this week recorded their largest outflows in their history. And if they close this Friday in red as well, then it will be the first time they experience five consecutive days of departures.
“This challenges the notion that the bitcoin spot ETF flow picture is going to be characterized as a sustained unidirectional net inflow,” the bank’s analysts commented.
According to JP Morgan strategists, “as we approach the halving, this profit taking is more likely to continue, particularly in a positioning context that still appears overbought despite last week's correction.”
Bitcoin tends to fall in price on days close to the halving
Historically, in the days close to the halving, bitcoin has fallen in price by taking
