This article briefly:
·JPMorgan research suggests that the recent cryptocurrency sell-off is nearing an end, suggesting a promising future for the market.
· Research shows that increased demand for Bitcoin futures contracts indicates market optimism about rising prices.
·While no timetable was set, the report pointed to a slowdown in price declines, suggesting a possible reversal in the market.
Research from JPMorgan Chase suggests that the recent wave of digital asset selloffs is coming to an end, which is good news for the cryptocurrency community.
The report states that “the recent sell-off in the cryptocurrency market may be nearing an end, with the liquidation of long positions “largely behind us.”
Bitcoin Futures Interest, a Key Indicator
A recent report citing JPMorgan research noted an increase in bitcoin futures trading activity. This suggests that the increase in activity could be a sign of stabilization in the market after the recent period of selling.
Bitcoin 1-month price chart. Source: BeInCrypto
Bitcoin futures are essentially contracts to buy or sell the cryptocurrency Bitcoin at a set price on a specific future date and are traded on the Chicago Mercantile Exchange (CME).
The report noted a decline in the “number of unsettled and active futures contracts on exchanges.” The drop in open interest indicates growing interest in buying Bitcoin and suggests the recent selling trend may be coming to an end.
Open interest refers to the total value of active long and short futures contracts. As the CME explains, it’s a way to measure market activity by assessing the capital invested in the futures market:
“As open interest increases, more money is flowing into futures contracts, and as open interest decreases, money is flowing out of futures contracts.”
Total funds allocated in open perpetual Bitcoin futures contracts (USD), 1 year. Source: Glassnode
JPMorgan's View on Bitcoin ETF
JPMorgan analyst Nikolaos Panigirtzoglou believes this suggests the market could soon be in for a reversal:
“Thus, we believe that the downside in the cryptocurrency market is limited in the near term.”
It is uncertain when the reversal trend will begin. However, the report noted that the price decline has slowed down. It noted that "as of 11:30 a.m. in New York on Friday, Bitcoin fell 0.2% to around $25,980."
Recently, JPMorgan Chase released a report stating that Bitcoin exchange-traded funds (ETFs) will not have a significant impact on Bitcoin prices.
Panigirtzoglou noted that while the product is available in Europe and Canada, it has yet to generate significant interest from investors.
However, the product is currently awaiting approval in the United States. The Securities and Exchange Commission (SEC) has yet to make a decision, and recent delays could push that decision back to 2024. #摩根大通 #加密货币
