Bitcoin set for worst week as JP Morgan predicts further fall in price as ETF demand falls

Bitcoin set for worst week as JP Morgan predicts further fall in price as ETF demand falls

Bitcoin has retraced over 10% of it’s all-time high on March 14. This has direct consequences, as the appetite for spot Bitcoin exchange-traded funds (ETF) has gone down.

JP Morgan Chase and Co. analysts have also warned that the retreat might continue to fall with a phenomenal price decline in the wake of the upcoming halving news.

The ten-spot Bitcoin ETFs suffered their largest three-day outflow since their inception on January 11, 2024. In tandem with a significant price decline, Bitcoin has also simultaneously seen a major price drop and is set for one of its worst weeks of the year after a 4% retracement. The token, valued at $65,415 at 6:57 a.m. (GMT) On March 22, it was trading at 64,212.00 USD, a significant decrease of 1.94% in its price during writing (7:59 p.m. GMT). 

JP Morgan strategists have confirmed the apprehension they expressed in a call in February for further declines in Bitcoin due to the highly anticipated halving event in April, which will reduce the supply of newly minted Bitcoin, sending the currency into a supply shock. Their bearish nature, JP Morgan strategists noted, signals a sustained open interest in CME Bitcoin futures and declining ETF flows.

The bank predicts Bitcoin’s price will drift down to $42,000 after the halving-induced euphoria subsides. Recent outflows from ETFs of about $836 million, including the Grayscale Bitcoin Trust, suggest a moderation in investor interest.

Despite Bitcoin reaching a record high in March of $73,798, there are concerns that the asset’s retail trader’s enthusiasm might be disappearing, with some experts warning of a potential decline way below $50,000 if the ongoing interest is not sustained in the post-halving era.

Published at Fri, 22 Mar 2024 19:50:13 +0100

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