JPMorgan Analysts Sound the Alarm on Crypto Rally
JPMorgan analysts have expressed skepticism about the recent crypto rally, suggesting that it may not be sustainable. They caution that the market’s excitement may be outpacing the underlying fundamentals.
A Closer Look at ETF Approval and Regulatory Battles
The JPMorgan analysts highlighted two key events that have been driving prices in the crypto market. These are the anticipated approval of a US-based spot Bitcoin ETF and legal battles with the SEC, which are expected to create a more favorable regulatory environment.
However, they argue that an approved ETF may not attract new investment but rather redirect existing funds from other Bitcoin products. The analysts also remain unconvinced that legal victories against the SEC will lead to significant regulatory easing.
Bitcoin Halving: A Pre-Priced Crypto Event?
The report also delves into the impact of Bitcoin halving, traditionally seen as a bullish event. However, JPMorgan’s analysts believe that this event has already been factored into current prices. They also anticipate a “buy the rumor, sell the fact” scenario post-ETF approval, echoing concerns raised by financial commentator Peter Schiff.
Hot Take: Can Bitcoin Sustain its Rally?
While JPMorgan analysts caution against exuberance in the crypto market, it seems that investors are undeterred. In the past few hours, Bitcoin has surged above $37,000, marking a new high for 2023. As excitement continues to build around potential ETF approval and regulatory developments, it remains to be seen whether Bitcoin’s rally can be sustained.
By
By
By
By