JPMorgan has warned against excessive optimism in the cryptocurrency market, especially in anticipation of the approval of a Bitcoin ETF.
The investment bank believes that investors should be cautious, as the market could experience a “buy-on-rumor, sell-on-fact” effect after the Securities and Exchange Commission (SEC) makes its decision.
They caution against the belief that a Bitcoin ETF approval will lead to a softening of the SEC’s regulatory stance, as well as the expectation of an influx of capital into digital assets.
JPMorgan also believes that regulatory tightening will not ease significantly, despite the recent defeats of the SEC in court cases against Ripple and Grayscale.
Additionally, the bank is not convinced that the upcoming halving in 2024 will have a significant impact on the price of Bitcoin.
