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While Bitcoin and general cryptocurrency markets upset investors with the declines, there is only one question in mind: “When will the correction end?”
At this point, JP Morgan analysts shared their latest predictions. Analysts have warned against cryptocurrencies in the near term due to various factors, including a lack of positive catalysts in the market and declining interest from retail investors.
JP Morgan analysts led by Nikolaos Panigirtzoglou wrote in a report today:
“We maintain a cautious stance on cryptocurrency markets in the near term for various reasons.
This stance is driven by the lack of positive catalysts, the dissipation of retail investor interest, and the three headwinds we mentioned earlier.
At this point, we think that the negative situation in Bitcoin will continue in the near term.”
Analysts also stated that the declines in the BTC and crypto markets in the last two weeks were due to large profit takings.
“The declines were due to significant profit sales in the last two weeks. At this point, we think that retail investors play a greater role in prices than institutional investors.
In fact, retail investors appear to have sold off both cryptocurrency and equity holdings in April.”
As you may remember, JPMorgan analysts warned that there could be a potential decline in the price of Bitcoin after the halving, as it was priced before the halving event. Analysts had predicted that the Bitcoin price would drop to $42,000 after the halving due to the decrease in miner rewards and the increase in production costs.
*This is not investment advice.