JPMorgan Maintains Cautious Outlook on Cryptocurrency Prospects

Analysts at JPMorgan maintain a “cautious” stance on cryptocurrencies in the near term. They cited a lack of drivers and declining interest from retail investors, reports The Block.

“Given also three risk factors (elevated positioning, the high price of the first cryptocurrency relative to the value of gold and the estimated cost of bitcoin mining, low level of startup funding), we maintain a cautious view,” the report states.

According to the specialists, the market has seen “significant” waves of profit-taking in the past two weeks, with retail rather than institutional investors playing a leading role.

Institutional players such as CTAs and quantitative hedge funds are taking profits on their previously extreme long positions in bitcoin. Those focusing on longer timeframes are reducing their positions to a lesser extent, the analysts concluded.

Back in April, JPMorgan warned of a potential correction ahead of the halving.

Earlier, Standard Chartered pointed to risks of bitcoin falling to $50,000.