JPMorgan beieved that institutiona are wary of crypto.
Other experts point out to growing interest.
Cryptocurrency market has recovered from the recent slump to multi-month lows, but JPMorgan experts refuse to believe in its rosy future. Investors are wary of crypto assets due to the profound collapse that wiped away over 80% of digital assets value since the beginning of the year, according to the bank’s experts.
“Participation by financial institutions in Bitcoin trading appears to be fading. Key flow metrics have downshifted dramatically,” analysts wrote in a recent research note.
The experts also pointed out that the price collapse hit crypto miners. Many of them were forced to shut down their business as it had become unprofitable.
However, Bloomberg Intelligence’s Mike McGlone takes the opposite point of view, saying that the institutional interest is on the rise despite the price decrease. He points out to the fact that the number of contracts from CME and CBOE is close to an all-time high.
“Sharp rallies should be expected as the market is extremely over-sold by most metrics,” McGlone added, pointing to technical indicators like the relative-strength index moving averages.
Meanwhile, BTC/USD is changing hands at $3,718 at the time of writing, off the recent high reached at $3,923. The cryptocurrency market has calmed down after a strong rally since the beginning of the week, though the overall sentiments remain positive.
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