Bitcoin set for worst week as JP Morgan predicts further fall in price as ETF demand falls

Bitcoin has retraced over 10% of it’s all-time high on March 14. This has direct consequences, as the appetite for spot Bitcoin exchange-traded funds (ETF) has gone down.

JP Morgan Chase and Co. analysts have also warned that the retreat might continue to fall with a phenomenal price decline in the wake of the upcoming halving news.

The ten-spot Bitcoin ETFs suffered their largest three-day outflow since their inception on January 11, 2024. In tandem with a significant price decline, Bitcoin has also simultaneously seen a major price drop and is set for one of its worst weeks of the year after a 4% retracement. The token, valued at $65,415 at 6:57 a.m. (GMT) On March 22, it was trading at 64,212.00 USD, a significant decrease of 1.94% in its price during writing (7:59 p.m. GMT). 

JP Morgan strategists have confirmed the apprehension they expressed in a call in February for further declines in Bitcoin due to the highly anticipated halving event in April, which will reduce the supply of newly minted Bitcoin, sending the currency into a supply shock. Their bearish nature, JP Morgan strategists noted, signals a sustained open interest in CME Bitcoin futures and declining ETF flows.

The bank predicts Bitcoin’s price will drift down to $42,000 after the halving-induced euphoria subsides. Recent outflows from ETFs of about $836 million, including the Grayscale Bitcoin Trust, suggest a moderation in investor interest.

Despite Bitcoin reaching a record high in March of $73,798, there are concerns that the asset’s retail trader’s enthusiasm might be disappearing, with some experts warning of a potential decline way below $50,000 if the ongoing interest is not sustained in the post-halving era.