The Cryptocurrency Market’s Downtrend Nearing an End, JPMorgan Research Suggests
JPMorgan’s latest research indicates that the recent downtrend in the cryptocurrency market may be coming to an end. The research suggests that most long-position liquidations have already been completed, and the selling trend might soon decelerate.
Key Points:
- JPMorgan predicts that the liquidations are “largely behind us” based on open interest in Bitcoin futures contracts on the CME.
- Bitcoin’s open interest decline is seen as a sign that the current price trend could be weakening.
- Positive developments, such as applications for Bitcoin ETFs and Ripple Labs’ partial victory against the SEC, have boosted Bitcoin’s price in recent months.
- However, traders are now awaiting Bitcoin ETF decisions and the SEC’s appeal against Ripple, leading to renewed uncertainty.
- External factors like rising U.S. real yields and concerns about China’s economic growth have also contributed to the crypto market’s decline.
Overall, JPMorgan’s research suggests that the cryptocurrency market may experience limited downside in the near term, but remains sensitive to future developments and external market conditions.
Hot Take:
While JPMorgan’s research provides some optimism for the crypto market, it’s important to approach these predictions with caution. The market is highly volatile and influenced by various factors, making it challenging to accurately forecast its future direction. Traders and investors should stay informed and closely monitor market developments to make well-informed decisions.
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