Wall Street giant JPMorgan (JPM) said it's keeping its cautious stance on cryptocurrency markets in the near term due to a lack of positive catalysts and because the retail impulse is disappearing.
The bank notes that retail investors sold both crypto and equity assets in April and spot bitcoin exchange-traded funds (ETFs) have seen outflows. The three headwinds the bank has already identified – elevated positioning, high bitcoin prices versus gold and versus the estimated bitcoin production cost, and subdued crypto venture capital (VC) funding – are also still in place.
Cryptocurrency markets have seen significant profit taking in recent weeks, with retail investors playing a bigger part in the sell-off than institutional investors, the report said. Bitcoin fell 16% in April, the biggest monthly decline since June 2022.
Investors sold U.S.-based spot bitcoin ETFs at the fastest pace ever on Wednesday. The 11 ETFs saw a cumulative net outflow of $563.7 million, the largest since the funds started trading on Jan. 11.
With regards to institutional investors, “it has been mostly momentum traders such as commodity trading advisors (CTAs) or other quantitative funds taking profit on previous extreme long positions in both bitcoin and gold,” analysts led by Nikolaos Panigirtzoglou wrote.
Still, analysis of the futures market suggests a “more limited position reduction by other institutional investors outside quantitative funds and CTAs,” the authors wrote.
Read more: Bitcoin Could Drop Further to as Low as $50K, Standard Chartered Says
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
There is no comment, immediately to comment!