According to analysts at JPMorgan Bank, Bitcoin’s November rally will be short-lived. Investors are wrong to bet on a long rally.
There are several factors that suggest the market is overheating. The buildup built on expectations of spot bitcoin-ETFs in the U.S. will soon be replaced by capital exiting the digital currency. Once the interest in this topic goes down, traders will switch to other instruments.
JPMorgan strategist Nikolaos Panigirtzoglou believes that the capital accumulated in the cryptosphere is simply moving from one instrument to another. Therefore, do not expect new investments, at least in the short term.
The analyst reminded that spot bitcoin-ETFs are already available to investors in Europe and Canada. However, the appearance of such instruments in the stock markets has not led to an increase in the inflow of institutional capital into cryptocurrencies.
Most likely, the inflow of funds to crypto funds in the United States will also be weak, JPMorgan emphasized.