At Extreme Investor Network, we pride ourselves on providing valuable and insightful information to our readers to help them make informed decisions when it comes to investing. In a recent report from JPMorgan, it was noted that retail dollars flowed out of bitcoin ETFs in April, signaling a cautious stance on the cryptocurrency.
JPMorgan’s analysts previously predicted that the widely anticipated Bitcoin halving had been priced in ahead of the April 19 event, leading to some downside pressure in the weeks following. This prediction, along with overbought conditions, high price compared to gold, and low activity in venture capital funding, contributed to a 6% decline in bitcoin since the event.
According to Nikolaos Panigirtzoglou of JPMorgan, the past two weeks have seen significant selling and profit-taking, with retail investors potentially playing a larger role than institutional investors. This shift in sentiment has also been reflected in the retail impulse into equities, which has downshifted over the past month.
With a lack of positive catalysts, dissipating retail impulse, and ongoing headwinds, JPMorgan maintains a cautious stance on crypto markets in the near term. Technical analysts believe that bitcoin could slide to around $50,000 after falling below the key $60,000 support level, but the long-term uptrend remains intact.
It’s important to note that price action surrounding the halving event is typically unremarkable in the short term, and investors should consider the broader macroeconomic factors at play. In the weeks leading up to the conclusion of the Federal Reserve’s meeting, cryptocurrencies were also pressured by macro uncertainties surrounding inflation, which ultimately led to the central bank keeping rates unchanged.
In addition to crypto, retail investors have also been selling equities in April, with the impulse into stocks shifting downwards. This shift in sentiment is evident in the net flow into equity funds, including ETFs and mutual funds, which turned negative in April after strong buying in February and March.
At Extreme Investor Network, we encourage our readers to stay informed and exercise caution when navigating the volatile world of investing. By staying up-to-date on market trends and expert analysis, you can make strategic decisions to protect and grow your wealth.
