JPMorgan analysts warned that the price of the first cryptocurrency could show a further decline, since Bitcoin, despite the correction, is in the overbought zone. The Block writes about this.
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This week the price of the asset decreased by more than by $12,000. Having reached a historical high of $73,650, Bitcoin showed a noticeable decline. The cost of the first cryptocurrency dropped to $61,000.
Despite the noticeable decline, the asset still remains in the zone of excessively inflated value, the bank’s report says. Experts assume a further reduction in the market capitalization of Bitcoin.
This is indicated by two indicators at once: the proxy factor of JPMorgan futures positions and the premium of the Bitcoin futures price compared to the spot price of the asset.
In the company indicate the presence of significant optimism in the market, fueled by recent record inflows of funds into the Bitcoin ETF spot. However, the latest data for the sector shows a decline in net inflows, JPMorgan said. According to experts, this confirms the lack of continuous financial infusion into cryptocurrency ETFs.
In addition, representatives of the financial giant expect further profit-taking as Bitcoin approaches the halving. Earlier, JPMorgan allowed the price of the first cryptocurrency to collapse to $42,000 after cutting the reward for mining the asset by half.