The passion of buyers does not weaken!


Sat 23 Mar 2024 ▪ 3 min reading ▪ by Luc Jose A.

We could have observed a drop in interest in bitcoin with the overwhelming drop in the asset's prices in recent days. This is not what is happening since the queen of cryptos is at the center of acquisitions considered massive, according to some experts. A trend which they envisage continuing while the outlook for bitcoin gives rise to optimism.

Bitcoin, the flagship crypto

Decline in Bitcoin ETF Inflows to Continue

According to a report from JPMorgan, bitcoin remains overbought despite the recent correction affecting the crypto market. The news comes as Bitcoin ETFs saw large outflows last week, indicating a slowdown in net inflows.

The bank believes that this trend is likely to continue. A projection linked to the effect of profit-taking in anticipation of the halving of bitcoin miners' remuneration expected for next month.

Certainly, after a sharp correction, bitcoin experienced a substantial rebound stimulated by the meeting of the Federal Open Market Committee (FOMC) which was held on Wednesday. But JPMorgan suggests the sell-off may not be over yet.

However, as JPMorgan experts note, optimism prevails in the market regarding a significant increase in prices by the end of the year. Investors appear confident that demand for bitcoin will continue unabated, even if bitcoin supply declines after the reward halving.

Bitcoin still attracts interest despite correction

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We have to be realistic

Beyond optimism, JPMorgan analysts seem to call for realism. Their findings are that the notable slowdown in the pace of inflows into spot bitcoin ETFs calls into question the perception of sustained inflows into these ETFs.

Instead, the report's authors suggest that profit-taking activities are likely to persist. Moreover, if we consider the current overbought position on the crypto market, despite the recent 15% correction in bitcoin.

Therefore, experts emphasize the need for careful observation of market dynamics in the context of ongoing fluctuations. But above all the anticipation of key events like the halving.

They note that as such an event approaches, the likelihood of intensified profit-taking is higher. That said, crypto market participants must be vigilant to make informed decisions.

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Luc Jose A. avatarLuc Jose A. avatar
Luc Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this revolution in progress.

DISCLAIMER

The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.

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