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Bitcoin Retraces Over 10% of All-Time High
Bitcoin has undergone a retracement exceeding 10% from its all-time high on March 14, leading to a decrease in the demand for spot Bitcoin exchange-traded funds (ETF). Analysts from JP Morgan Chase & Co. have issued a warning regarding a potential continuous decline in Bitcoin’s price following the upcoming halving event.
Significant Outflow from Bitcoin ETFs
The ten-spot Bitcoin ETFs experienced their most substantial three-day outflow since their establishment on January 11, 2024. Concurrently, Bitcoin encountered a substantial price drop, marking one of its worst weeks of the year with a 4% retracement. The cryptocurrency, valued at $65,415 at 6:57 a.m. (GMT) on March 22, plummeted to $64,212.00 USD, representing a notable 1.94% decrease during the time of writing (7:59 p.m. GMT).
JP Morgan Predicts Further Declines
JP Morgan strategists have reiterated their anticipations of additional declines in Bitcoin’s price, attributing it to the forthcoming halving event in April. The event is expected to result in a reduction in the supply of newly generated Bitcoin, potentially triggering a supply shock in the market. Citing a pessimistic sentiment, JP Morgan strategists pointed out sustained open interest in CME Bitcoin futures alongside diminishing ETF flows.
The bank anticipates Bitcoin’s price to dip to $42,000 post the halving-induced excitement. Recent outflows totaling approximately $836 million from ETFs, including the Grayscale Bitcoin Trust, indicate a moderation in investor interest in the cryptocurrency.
Concerns Amid Record Highs
Despite Bitcoin achieving a record high of $73,798 in March, there are apprehensions regarding a decline in retail traders’ enthusiasm towards the asset. Some experts caution that if the current interest levels are not maintained post-halving, Bitcoin’s price could drop significantly below $50,000.
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