JP Morgan analysts warn of short-term risks for the crypto market despite recent Bitcoin price movements.
Crypto Market Analysis
JP Morgan analysts note that the recent Bitcoin price rise was short-lived. The main factor driving the increase was the discussion of Bitcoin reserves following Donald Trump's statement. However, the gains quickly reversed amid concerns over tariff changes and a lack of new market drivers.
Strategic Crypto Reserves
JP Morgan's Nikolaos Panigirtzoglou expressed skepticism regarding the feasibility of creating strategic crypto reserves. He emphasized that congressional approval for such reserves is doubtful, particularly for less stable tokens. Similar proposals have been rejected across several US states and by the central banks of Switzerland and Poland.
Investment Sentiment
The lack of catalysts and a decrease in market momentum negatively affect institutional investors' positions. Nikolaos Panigirtzoglou noted that Bitcoin and Ethereum futures indicators show potential for further easing. Weak capital raising data also indicate increased investor caution.
JP Morgan emphasizes that the crypto market remains under pressure and will seek new growth drivers.
