JPMorgan Anticipates Crypto Market Recovery
JPMorgan's research suggests a positive turn for the cryptocurrency community as the recent wave of digital asset sell-offs appears to end.
The report indicates that the liquidation of long positions, a significant sell-off driver, is now mostly behind us.
In a notable development, increased trading activity in Bitcoin futures is observed, potentially signaling the market’s stabilization after a prolonged period of decline. Bitcoin Futures, tradable contracts for buying or selling Bitcoin at a predetermined price on a specific future date, are actively traded on the Chicago Mercantile Exchange (CME).
This upswing in trading activity coincides with a decline in the volume of unsettled and active future contracts traded across various exchanges. This trend could signify growing interest in acquiring Bitcoin and suggest that the downward trend in prices might be easing.
Open interest, a measure of active long and short-term futures contracts, is used to gauge market activity. As open interest decreases, capital is withdrawn from futures contracts, and vice versa.
JPMorgan’s analyst, Nikolaos Panigirtzoglou, interprets these signals as indicative of a potential market reversal in the near future, leading to limited downside for the cryptocurrency markets.
While the exact timing of this reversal remains uncertain, the report notes a slowing rate of price decline, with Bitcoin’s value experiencing a minor decrease to around $25,980.
READ MORE: Crypto Analyst Envisions Bold Moves for Bitcoin and Ethereum: A Bullish Tale Unfolds
In addition, JPMorgan’s recent report downplays the potential impact of Bitcoin exchange-traded funds (ETFs) on Bitcoin’s price. This product has not garnered significant investor interest despite availability in Europe and Canada.
However, the product’s pending approval in the United States by the Securities and Exchange Commission (SEC) could potentially lead to a delayed decision, possibly extending into 2024.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
