JPMorgan Warns of Further Bitcoin Decline Despite Recent Correction
Bitcoin has experienced a pullback of over 10% from its all-time high, with the demand for spot Bitcoin exchange-traded funds (ETFs) showing signs of moderation, while a nalysts at JPMorgan Chase and Co. have cautioned that this retreat may have more room to run, Bloomberg reported Friday .
The group of 10 spot Bitcoin ETFs recently witnessed its largest four-day outflow since the products were introduced on January 11.
Meanwhile, the world’s largest cryptocurrency is on track for one of its worst weeks this year, suffering a 4% retreat.
At the time of writing, BTC was trading at around $65,400.
JPMorgan strategists have reiterated their belief that Bitcoin still appears overbought, renewing a prediction made in February that further declines could occur leading up to the highly-anticipated halving event in April.
This event will reduce the supply of newly minted BTC from miners.
The sustained open interest in CME Bitcoin futures, coupled with declining ETF flows, are seen as significant bearish signals for Bitcoin’s price, according to the JPMorgan strategists led by Nikolaos Panigirtzoglou.
“The pace of net inflows into spot Bitcoin ETFs has slowed markedly, with the past week seeing a significant outflow. This challenges the notion that the spot Bitcoin ETF flow picture is going to be characterized as a sustained one-way net inflow,” they said in a note published on Thursday.
“As we approach the halving event, this profit-taking is more likely to continue, particularly against a positioning backdrop that still looks overbought despite the past week’s correction.”
Last month, JPMorgan predicted that the BTC price would gradually decline towards $42,000 after April, as the euphoria surrounding the
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