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US banking JPMorgan has maintained a cautious stance on cryptocurrencies, according to its latest report that was published on Apr. 23.
According to JPMorgan, the cryptocurrency market is currently suffering from the lack of bullish catalysts after ETF inflows dried up.
At the same time, the bank's analysts cited elevated positioning, underwhelming venture capital (VC) funding, and the current production costs as the main bearish catalysts contributing to the ongoing selling pressure.
Last month, JPMorgan predicted that the Bitcoin halving was priced in, pouring cold water on some bullish predictions.
Valeria BlokhinaBack in February, it said that the price of the largest cryptocurrency could crash to as low as $42,000 after the halving event. The bank also predicted that the production cost of a single coin could roughly double. Around that time, Bitcoin bull Mike Novogratz also warned that the Bitcoin market was getting frothy.
The price of Bitcoin surged to its current all-time high of $73,737 in March and went on to log eight consecutive green monthly candles. However, it experienced a dramatic correction in April and then kept plunging in May due to disastrous ETF outflows and macroeconomic concerns. The flagship cryptocurrency is currently trading at $59,110.
Meanwhile, JPMorgan CEO Jamie Dimon recently doubled down on his long-standing criticism of Bitcoin, calling the largest cryptocurrency "a fraud" and a "Ponzi scheme." He also predicted that the flagship cryptocurrency would not go anywhere as a currency. At the same time, he still sees some value in blockchain technology.
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