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JPMorgan issues warning on Bitcoin
Alex Dovbnja
US banking giant JPMorgan has warned cryptocurrency investors that Bitcoin is not out of the woods yet
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US bank JPMorgan has maintained a cautious stance on cryptocurrencies, according to its latest report published on April 23.
According to JPMorgan, the cryptocurrency market is currently suffering from a lack of bullish catalysts after ETF inflows dried up.
At the same time, the bank’s analysts cited high positioning, disappointing venture capital (VC) funding and current production costs as the main bearish catalysts contributing to the ongoing selling pressure.
Last month, JPMorgan predicted that Bitcoin’s halving was already priced in, throwing cold water on some bullish predictions.
In February, it was said that the price of the largest cryptocurrency could plummet to as low as $42,000 after the halving event. The bank also predicted that the cost of producing a single coin could roughly double. Around that time, Bitcoin bull Mike Novogratz also warned that the Bitcoin market was getting frothy.
Bitcoin price rose to its current all-time high of $73,737 in March and went on to record eight consecutive monthly green candles. However, it underwent a dramatic correction in April and then continued to collapse in May due to disastrous ETF outflows and macroeconomic concerns. The flagship cryptocurrency is currently trading at $59,110.
Meanwhile, JPMorgan CEO Jamie Dimon recently reiterated his long-standing criticism of Bitcoin, calling the largest cryptocurrency “a fraud” and a “Ponzi scheme.” He also predicted that the flagship cryptocurrency would go nowhere as a currency. At the same time, he still sees some value in blockchain technology.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.