JPMorgan Warns of Further Bitcoin Decline Despite Recent Correction
Bitcoin has experienced a 10% pullback from its all-time high, with demand for spot Bitcoin ETFs showing signs of moderation.
Analysts at JPMorgan Chase and Co. caution that this retreat may have more room to run, as the group of 10 spot Bitcoin ETFs recently witnessed its largest four-day outflow since the products were introduced on January 11.
The world’s largest cryptocurrency is on track for one of its worst weeks this year, suffering a 4% retreat. JPMorgan strategists believe Bitcoin still appears overbought, with further declines potentially occurring leading up to the highly-anticipated halving event in April.
The sustained open interest in CME Bitcoin futures and declining ETF flows are seen as significant bearish signals for Bitcoin’s price.
Last month, JPMorgan predicted that the BTC price would gradually decline towards $42,000 after April. Bernstein has raised its year-end forecast for Bitcoin to $90,000, up from the previous projection of $80,000.
(With inputs from Shikha Singh)
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