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The price of bitcoin is likely to fall after the halving event as the market is still in an overbought condition, JPMorgan said.
Analysts at the investment banking giant said that open interest in btc futures shows that bitcoin is overbought and trading above the volatility-adjusted price of $45,000.
They added that recent performance indicated a decline in investor interest and that markets are already factoring in the bitcoin halving event.
bitcoin was trading at $64,700 at 03:13 EST after gaining almost 6% in the last 24 hours. The gains come hours before the April 19 or 20 halving, which has historically triggered a rally in the price of btc.
bitcoin price: the technical outlook is “quite worrying”
“The technical outlook for bitcoin is quite worrying as we have not seen any recovery after the price drop on Friday and Saturday,” the bank's analysts said. “On the contrary, the market appears to be getting used to current prices in anticipation of a halving.”
JPMorgan's analysis of bitcoin's likely price performance after the btc halving is similar to that of Goldman Sachs. In a note to investors, Goldman warned against using past cycles to predict bitcoin's performance, arguing that macroeconomic conditions are different from previous halvings, when interest rates were extremely low.
JPMorgan CEO says bitcoin is a 'fraud'
Meanwhile, JPMorgan CEO Jamie Dimon has resumed his attack on bitcoin, calling it a “fraud” and “Ponzi scheme” in an interview with Bloomberg TV.
“If you're talking about cryptocurrencies like bitcoin, I've always said it's a fraud,” he said.
<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”7.8666666666667″>
JUST IN: JPMorgan CEO Jamie Dimon says twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin It is a fraud and a Ponzi scheme.
JPMorgan is an authorized participant of the BlackRock Spot bitcoin ETF. pic.twitter.com/4tpjkaZ0TV
— Watcher.Guru (@WatcherGuru) twitter.com/WatcherGuru/status/1780981956655640843?ref_src=twsrc%5Etfw”>April 18, 2024
Dimon also said he was skeptical about btc's potential as a currency, saying it lacked the right attributes.
However, Dimon recognized the value of smart contracts and blockchain technology. According to him, if a cryptocurrency can create something using smart contracts, then it has value.
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