JPMorgan struggles to find catalyst for Bitcoin and Ethereum price increase
2 min readAmid the current rally, Bitcoin, the leading cryptocurrency, slipped back to 65,933 USD, while other cryptocurrencies saw massive declines. JPMorgan made headlines with its analysis, where it maintained its cautious stance on Bitcoin (BTC) and Ethereum (ETH) in the short term and did not suggest any immediate catalysts for bullish price action.
JPMorgan says Bitcoin remains bearish in the short term
Wall Street giant JPMorgan has maintained its cautious stance on the cryptocurrency market, pointing out that there are no immediate catalysts that could trigger an upward move in the Bitcoin market. The bank based its assessment on the recent outflows from Bitcoin ETFs and increased pressure from the US Securities and Exchange Commission (SEC), which have kept the market’s greed and fear levels at 55 , reflecting a neutral stance.
The giant JPMorgan remains cautious even after Bitcoin’s price briefly shot up due to the launch of the ETF in Hong Kong. In any case, the bank sees mixed signs of upside potential for Bitcoin and the market in the long term. Attentive traders could buy and hold the falling cryptocurrency asset BTC now to earn significant returns in the future. With this view, Bitcoin is among the best cryptocurrencies to buy now.
Ethereum price lags behind BTC – short-term holders control the market
After the Bitcoin halving, Ethereum, the second largest cryptocurrency by market capitalization, has fallen behind and has shown weak price dynamics in the market. According to the data from Glassnode, the Ethereum price is struggling to achieve the capital rotation trends recorded in previous cycles. The BTC-ETH price analysis has generated interpretations and interest in the dynamics of the cryptocurrency market.
The Ethereum price has fallen more than the BTC price, showing a relatively weak performance going into the last two years – as evidenced by a subdued ETH/BTC ratio. In addition, the Ethereum coin has seen a massive influx of short-term holders, reflecting recent interest from new investors.
There has been a growing divergence in performance between #Bitcoin and #Ethereum during the 2023-23 cycle thus far.
This has manifested as weaker price performance for ETH, and can be explained by an overall weaker capital rotation trend, especially relative to past cycles and… pic.twitter.com/WV1bXsbJkV
— glassnode (@glassnode) May 7, 2024
Although the Ethereum price continues to lag behind Bitcoin, Cathie Wood, CEO of Ark Invest, is optimistic that Ethereum (ETH) can surpass BTC’s market capitalization in the near future , making it the best coins to buy now.
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