JPMorgan Thinks Bitcoin Market Bottom Is Near
JPMorgan analysts are optimistic about Bitcoin's short-term outlook, seeing "limited downside."
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Yesterday, JPMorgan analysts shared optimistic views regarding the near-term trajectory of the crypto markets. According to their recent analysis, Bitcoin futures data suggests there’s “limited downside for crypto markets over the near term.”
Last week, the market took a hit when news broke that Elon Musk’s SpaceX sold some of its bitcoin holdings and China’s real estate giant declared bankruptcy. These events triggered sharp drops in crypto prices, which subsequently led to liquidations of $1.04 billion for bitcoin futures contracts. Marking the biggest liquidation event since the FTX collapse.
As of today, Bitcoin’s future open interest, an indicator of the total number of futures and options contracts that remain unexpired, is $8.4 billion. This is a 27% decrease from $11.6 billion on August 17, according to data from The Block.
Long-position liquidations are “largely behind us,” JPMorgan analyst Nikolaos Panigirtzoglou wrote.
Bitcoin’s price sits at $26,051, down 0.1% in the last 24 hours. Over the past month, the largest digital currency has seen a nearly 12% dip in value.
However, the broader narrative for Bitcoin remains optimistic for many investors. Earlier this year, Bitcoin got a wave of enthusiasm after the financial titan BlackRock applied for a Bitcoin spot ETF. Pantera, a $3.5B cryptocurrency fund, wrote this week that “if history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.”