According to U.Today, US banking giant JPMorgan has continued to express caution towards cryptocurrencies, as per their latest report released on April 23. The report suggests that the cryptocurrency market is currently facing a dearth of bullish catalysts, following a significant reduction in ETF inflows. The bank's analysts have identified high positioning, disappointing venture capital funding, and current production costs as the primary bearish catalysts contributing to the ongoing selling pressure.
In the previous month, JPMorgan had suggested that the Bitcoin halving was already factored into the price, thus dampening some optimistic predictions. In February, the bank had predicted that the price of Bitcoin, the largest cryptocurrency, could plummet to as low as $42,000 following the halving event. It was also forecasted that the production cost of a single coin could approximately double.
During the same period, Bitcoin bull Mike Novogratz had also cautioned that the Bitcoin market was becoming overheated. Bitcoin's price had soared to an all-time high of $73,737 in March, recording eight consecutive months of gains. However, it underwent a significant correction in April and continued to decline in May due to disastrous ETF outflows and macroeconomic concerns. The flagship cryptocurrency is currently trading at $59,110.
JPMorgan CEO Jamie Dimon has reiterated his long-standing criticism of Bitcoin, labeling it as a 'fraud' and a 'Ponzi scheme.' He also predicted that Bitcoin would not make significant progress as a currency. However, he acknowledged some value in blockchain technology.
