Analysts working for JPMorgan have suggested that the current corrective phase in the cryptocurrency markets, which has been followed by liquidations, may have reached its conclusion.
“Limited Downside”
Analysts working for JPMorgan have suggested that the current corrective phase in the cryptocurrency markets, which has been followed by liquidations, may have reached its conclusion.
In the banking giant’s analysis of CME Bitcoin Futures contracts, the unwinding of long bets may have reached its end. As a result, they forecast that the near-term cryptocurrency markets will only witness little downside in the near future.
The XRP verdict, anticipation that the SEC will approve spot Bitcoin ETFs, PayPal’s entry into the stablecoin market, and preparations for the upcoming Bitcoin halving event all contributed to traders establishing long positions in the cryptocurrency.
A recent tidal wave of long-position liquidations, on the other hand, was prompted by waning optimism. During the time that Congress was debating whether or not to enact stringent laws governing stablecoins, the SEC expressed confidence that it would appeal the XRP judgment. This forced the SEC to postpone decisions on whether or not to approve Bitcoin ETFs.
The analysts at JPMorgan believe that the unwinding of long positions is almost over, and they highlight the fact that the correction is a component of a bigger unwinding of risk assets, which includes equities and technology businesses. There were a number of variables that contributed to the decline, including frothy positioning in the technology sector, rising real yields in the United States, and concerns regarding the expansion of the Chinese economy.
The price of Bitcoin (BTC), the most widely used cryptocurrency, is approximately $26,000 as of the time this article was written.
