JPMorgan Forecasts Limited Downside For Crypto Markets: Report
JPMorgan analysts view the drop in Bitcoin open interest as a sign that the current price trend may be weakening.< /p>
The recent downtrend in the cryptocurrency market appears to be coming to an end as the latest research from JPMorgan suggests that most long position liquidations have been completed.
According to a report by Bloomberg, analysts at the US bank believe that the liquidations are "largely behind us". The prediction is based on open interest in Bitcoin (BTC) futures on the Chicago Mercantile Exchange (CME), indicating that the selling trend may slow down soon. Open interest, which refers to active futures contracts, serves as an indicator of market sentiment and the strength of price trends.
The drop in Bitcoin open interest rates is seen as a sign that the current price trend may be weakening, analysts say. “As a result, we are seeing limited declines for near-term crypto markets.”
CME BTC Futures Open Interest . Source: CoinGlassCryptocurrency prices have been on a downward trend in recent weeks due to dwindling optimism about regulatory developments in the United States, notes the report. On August 26, Bitcoin was trading at nearly $26,000, down 11.27% in the last 30 days, according to Cointelegraph Markets.
Positive developments over the past few months have driven the price of Bitcoin higher. Among them were a series of requests for the first American exchange-traded funds (ETFs) linked to the spot price of Bitcoin. The list of players awaiting regulatory approval includes BlackRock, Fidelity, ARK Investments and 21Shares, along with several other asset managers.
JPMorgan analysts view the drop in Bitcoin open interest as a sign that the current price trend may be weakening.< /p>
The recent downtrend in the cryptocurrency market appears to be coming to an end as the latest research from JPMorgan suggests that most long position liquidations have been completed.
According to a report by Bloomberg, analysts at the US bank believe that the liquidations are "largely behind us". The prediction is based on open interest in Bitcoin (BTC) futures on the Chicago Mercantile Exchange (CME), indicating that the selling trend may slow down soon. Open interest, which refers to active futures contracts, serves as an indicator of market sentiment and the strength of price trends.
The drop in Bitcoin open interest rates is seen as a sign that the current price trend may be weakening, analysts say. “As a result, we are seeing limited declines for near-term crypto markets.”
CME BTC Futures Open Interest . Source: CoinGlassCryptocurrency prices have been on a downward trend in recent weeks due to dwindling optimism about regulatory developments in the United States, notes the report. On August 26, Bitcoin was trading at nearly $26,000, down 11.27% in the last 30 days, according to Cointelegraph Markets.
Positive developments over the past few months have driven the price of Bitcoin higher. Among them were a series of requests for the first American exchange-traded funds (ETFs) linked to the spot price of Bitcoin. The list of players awaiting regulatory approval includes BlackRock, Fidelity, ARK Investments and 21Shares, along with several other asset managers.
What's Your Reaction?
![Three of ID's top PR executives quit ad firm Powerhouse [EXCLUSIVE]](https://variety.com/wp-content/uploads/2023/02/ID-PR-Logo.jpg?#){kind=logo}
