Analysts at financial giant JPMorgan Chase called on investors to maintain a cautious position on the cryptocurrency market. In their opinion, the growth of the digital assets industry should not be expected to resume in the near future, writes The Block.
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Experts said a number of factors pose increased risks to the industry. Among them are a drop in interest from retail investors, a low level of funding from cryptocurrency venture funds, and other aspects.
“Given the lack of positive catalysts, the weakening momentum of retail investors and the presence of risk factors, we maintain a cautious position on the cryptocurrency markets in the near term,” said JPMorgan.
Experts noted the active sale by retail investors of not only crypto assets, but and shares on stock exchanges. JPMorgan paid special attention to the outflow from spot Bitcoin ETFs, which show capital withdrawal for most of April 2024.
At the same time, analysts emphasized that institutional investors are also involved in profit-taking. This mainly concerns those market players who had long positions in Bitcoin. At the same time, some institutions remain calm and continue to hold the first cryptocurrency on their balance sheet.
Recall
The Ministry of Finance wrote that on May 1, 2024, Bitcoin fell to $57 thousand. At the time of writing the news, the first cryptocurrency is trading at $59,150.
Standard Chartered analysts believe that the Bitcoin rate may fall to $50,000. The main reason for the decline in the value of Bitcoin is the outflow of funds from spot Bitcoin ETFs.
