JPMorgan Keeps Cautious Stance on Crypto Prospects

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JPMorgan analysts have a cautious outlook on cryptocurrencies in the near future. They attribute this to a lack of driving forces and a decline in retail investors’ interest.

Their report states:

“We maintain our cautious stance for three reasons: high positioning, Bitcoin’s high price in relation to gold, and low startup funding.”

Experts claim that there have been significant sell-offs in the market in the last two weeks, mainly driven by retail investors rather than institutional investors. Institutional investors, such as CTA and quantitative hedge funds, are taking profits on their previously significant Bitcoin holdings.

However, analysts note that investors with longer-term strategies are reducing their positions to a lesser extent.