It’s the fault of small investors. This is the analysis that JPMorgan released a few hours ago on collapse of the last few days in the crypto segment and more generally in the riskier financial markets. An analysis that would write the final word on the conspiracy theories of large movements organized to favor, it is still not clear who.
According to the large bank, which produces reports on the BTC and crypto world quite frequently, it was therefore the small investors who brought the crypto world and other assets to life risk on an April that will certainly not go down in history positively. An opinion which, however, is not so clear-cut, if we then look at what the group’s analyst, Nikolaos Panigirtzoglou, with whom we found ourselves in disagreement several times, wrote.
Correct analysis? It doesn’t mean that it is just because it comes from JPMorganbut given that many are wondering who caused such a sad closure of the monthly magazine, it will still be worth analyzing it… to understand the main points of view, especially at the top levels of finance.
Are small retailers the ones who have sunk the crypto and Bitcoin market?
This would seem to be one of the main causes, together with the broader ones of the macro context within which we are moving. Investors shed crypto positions, Bitcoin and also on riskier assets, including shares, for an uninspiring end to April.
An April that saw Bitcoin lose by double digits and the bulk of altcoins do even worse, for a month that was certainly not welcoming for those who were approaching this market for the first time.
As far as institutional investors are concerned, relatively few would have operated, between those who try to trade the trend and the few who therefore preferred to close positions that were making strong gains.
However, what triggered it all was the fear that lingers (is?) among small investors, also thanks to the winds of war and an economic situation that is starting to become worrying. Something that according to JPMorgan may not be behind us yet, with the group proclaiming itself doubtful on the future of the sector in the short term.
Things which, however, would seem, at least in part, to be denied by today’s movements Bitcoin in excellent shape recover the $59,000, however much he will have to do whether he will be able to keep it or not.
Analysis, analysis, analysis
It is worth underlining in closing that analyses, including those of large banks, do not always have the gift of infallibility. On the contrary, they are often interesting to get an idea of, but should never be followed as if they were oracles.
Bitcoin has repeatedly proven that it is more than capable of doing the exact opposite of what markets, analysts and big banks expect. And who knows, this might not be the occasion too.
