TechFlow reports, citing The Block, that JPMorgan has expressed skepticism about the sustainability of the recent surge in the cryptocurrency market, stating that "the crypto rally appears somewhat overdone."
Analysts pointed out two main factors seemingly driving the rise in cryptocurrencies over the past month. The first is the potential approval of spot Bitcoin ETFs in the United States, which could bring new capital into the crypto market and be seen as a win for the crypto industry and a setback for the SEC. The second factor is the SEC's losses in legal cases against Ripple and Grayscale, which might lead to a more lenient approach by the SEC in the future.
In response, analysts said: "Given the largely unregulated nature of the cryptocurrency industry, it remains unclear how significantly regulatory pressure might ease. U.S. cryptocurrency regulations are still unresolved, and we do not believe U.S. lawmakers will change their stance due to these two legal cases, especially with the FTX fraud case still fresh in memory."
