JPMorgan analysts have expressed a cautious outlook on the cryptocurrency market in the near term, citing a lack of positive catalysts and waning retail investor momentum. According to reports from CNBC and BTC-Echo, the explosive growth of Bitcoin ETFs in the United States has slowed down, with record outflows of around $564 million on May 1, 2024, after weeks of consistent inflows. The BlackRock ETF also saw no inflows in the last seven days, coinciding with a nearly 10% drop in the Bitcoin price.
The launch of the first Bitcoin ETFs in Hong Kong on April 30, 2024, generated only $87 million in inflows on the first trading day. JPMorgan analysts identify three central challenges for the market: exhaustion, Bitcoin's high valuation compared to gold, and expensive production costs. Additionally, interest from retail investors is diminishing, while institutional investors are taking profits and reducing their positions in Bitcoin and gold due to new risk assessments.
Despite Bitcoin's impressive 30% rise since the beginning of the year and its 156% surge in 2023, the absence of positive catalysts is expected to hinder further development. The recent Bitcoin halving event on April 19 is anticipated to have minimal short-term impact on the cryptocurrency's price, according to JPMorgan's earlier assessment.
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