- Analysts at JPMorgan warned that the price of the first cryptocurrency could show further declines.
- The company pointed to the overbought bitcoin, despite the recent correction.
- The overvalued rate is indicated by two indicators at once.
Analysts of the financial company JPMorgan Chase presented a new forecast regarding the cost of the first cryptocurrency. In their opinion, despite the recent correction of the rate, bitcoin is still in the overbought zone, writes The Block with reference to experts.
This week, the price of the asset fell by more than $12,000. Having reached an all-time high of $73,650, bitcoin showed a noticeable decline. The value of the first cryptocurrency fell to $61,000.
Contrary to the noticeable decrease, the asset still remains in the zone of overvaluation, the bank said in a report. Experts allow further reduction in the market capitalization of bitcoin.
This is indicated by two metrics at once: the proxy factor of JPMorgan futures positions and the premium of the bitcoin futures price compared to the spot value of the asset.
“Both metrics indicate that the first cryptocurrency remains in overbought territory despite a sharp correction this week,” the experts said.
The company points to the presence of significant optimism in the market, fueled by the recent record infusion of funds into spot bitcoin-ETFs. Nevertheless, the latest data on this sector shows a reduction in net inflows, JPMorgan said. According to experts, this confirms the lack of continuous financial infusion into cryptocurrency ETFs.
In addition, representatives of the financial giant expect further profit taking amid the approaching halving of bitcoin. Earlier in JPMorgan allowed the collapse of the rate of the first cryptocurrency to $42 000 after reducing the remuneration for mining the asset in half.
Recall, we wrote that JPMorgan denied the transfer of funds from gold-based funds to spot bitcoin-ETF.
