JPMorgan analysts call crypto rally ‘overdone’

The rally in the crypto market looks overextended and could reverse sharply after the anticipated approval of the bitcoin-ETF. JPMorgan analysts concluded this, The Block reports.

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“Caution is warranted due to the high odds of encountering the ‘buy the rumor, sell the news’ effect after news from the SEC,” they wrote.

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In the current rally, the analysts saw hopes that approval of the product would be perceived as a win for the industry, potentially leading to a softer regulatory stance by the SEC.

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Additionally, the ETF launch is expected to attract capital into digital assets.