JPMorgan, the global investment bank, has released its analysis on recent trends in the equity and crypto markets. Nikolaos Panigirtzoglou, a managing director specializing in Global Market Strategy, provided insights on the role of retail and institutional investors in these markets. According to Panigirtzoglou, there has been a significant increase in selling and profit-taking, with retail investors playing a major role. He noted that retail investors have been selling both crypto and equity funds, and indicators of retail investor activity have declined in the past month. Panigirtzoglou also highlighted that institutional momentum traders and quantitative funds have been reducing their positions in stocks, bitcoin, and gold. However, he noted that other institutional investors have not yet de-risked their portfolios, leaving room for further reduction in positions. Earlier this month, Panigirtzoglou expressed his expectation of a decline in the price of bitcoin following the halving, citing overbought conditions. He also pointed out the low level of venture capital funding for crypto projects. What are your thoughts on Panigirtzoglou’s analysis? Let us know in the comments section below.
