Crypto Market Continues Rally as Bitcoin Hits Highest Price Since May 2022

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JPMorgan analysts have warned that the “crypto rally looks overdone” and think that a spot Bitcoin ETF approval is a “buy the rumor/sell the fact” event.

- The crypto market is off to a hot start in November as the rally that began in the middle of October has continued, with Bitcoin climbing to its highest price since May 2022 on hopes that a spot BTC exchange-traded fund will soon be launched after years of rejection by the Securities and Exchange Commission .

"First, instead of fresh capital entering the crypto industry to be invested in the newly-approved ETFs, we see as a more likely scenario existing capital shifting from existing Bitcoin products such as the Grayscale Bitcoin Trust, Bitcoin futures ETFs, and publicly listed Bitcoin mining companies, into the newly-approved spot Bitcoin ETFs," the JPMorgan analysts said.

"It is far from clear that the regulatory tightening of the crypto industry will lessen significantly going forward given how unregulated this industry is," they said. "U.S. crypto industry regulations are still pending and we do not believe U.S. lawmakers would shift their stance because of the above two legal cases, especially with the memories from the FTX fraud still fresh.

 

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