JPMorgan Warns of Bitcoin Downturn as Institutional Demand Wanes
1min read JPMorgan has issued a stark warning to Wall Street, cautioning of a potential downturn in the cryptocurrency market, particularly for Bitcoin. The bank's analysts have pointed to weakening institutional demand for Bitcoin and Ethereum futures as a bearish signal, indicating a possible decline in the near term.
The Bitcoin price has been stagnant in recent weeks, hovering below the $100,000 mark, despite a previous surge following Donald Trump's election victory. Influential Bitcoin executive Samson Mow has expressed concerns about price manipulation, suggesting that the sideways movement in the Bitcoin price could be artificially manufactured.
Technical analysis indicates that Bitcoin is approaching a so-called "death cross," which some analysts fear could signal an impending price crash. Other analysts, such as Tyler Richey of Sevens Report Research, have warned that the Bitcoin price could collapse to around $70,000 if key support levels are breached.
Meanwhile, Abu Dhabi's $1 trillion sovereign wealth fund has invested $436 million in BlackRock's spot Bitcoin exchange-traded fund (ETF) during the final quarter of 2023, marking a significant step in global Bitcoin adoption. However, U.S. spot Bitcoin ETFs have recently experienced net outflows for the first time since early January, and the crypto fear and greed index has entered "fear" territory, suggesting a potential shift in market sentiment.
