tl;dr
JPMorgan has a cautious stance on cryptocurrencies, citing lack of bullish catalysts, elevated positioning, underwhelming venture capital funding, and high production costs as bearish factors. The bank previously predicted Bitcoin halving was priced in and forecasted a potential crash to $42,000. JP...
JPMorgan has maintained a cautious stance on cryptocurrencies, citing the lack of bullish catalysts and bearish factors contributing to ongoing selling pressure. The bank's previous predictions include the Bitcoin halving being priced in and a potential crash to as low as $42,000. CEO Jamie Dimon has criticized Bitcoin as "a fraud" and "Ponzi scheme" but sees value in blockchain technology.
According to JPMorgan's latest report published on Apr. 23, the cryptocurrency market is suffering from the lack of bullish catalysts after ETF inflows dried up. The bank's analysts also mentioned elevated positioning, underwhelming venture capital funding, and high production costs as the main bearish catalysts contributing to the ongoing selling pressure.
Last month, JPMorgan predicted that the Bitcoin halving was priced in, pouring cold water on some bullish predictions. In February, it stated that the price of the largest cryptocurrency could crash to as low as $42,000 after the halving event. The bank also foresaw the production cost of a single coin roughly doubling. The price of Bitcoin surged to its current all-time high of $73,737 in March, but experienced a dramatic correction in April and continued to plunge in May, currently trading at $59,110.
JPMorgan CEO Jamie Dimon recently reiterated his criticism of Bitcoin as "a fraud" and "Ponzi scheme," and expressed doubt about its potential as a currency. Nevertheless, he continues to see value in blockchain technology.
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