JP Morgan's Surprising Crypto Report: Limited Negativity Emphasis for Bitcoin and Altcoins! - COINTURK NEWS
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JP Morgan’s Surprising Crypto Report: Limited Negativity Emphasis for Bitcoin and Altcoins!

1:24 pm (33 days ago)
August 25, 2023

Global banking giant JP Morgan recently published a research report stating that the open interest in Bitcoin (BTC) futures on the Chicago Mercantile Exchange (CME) indicates the end of the decline in long positions rather than the beginning, drawing attention to an important detail.

“Limited Negativity” Emphasis for the Crypto Market

JP Morgan’s research report, released on August 24, stated that the decline in long positions in Bitcoin futures on CME is in the final stage rather than the beginning stage. Open interest refers to the total number of derivative contracts such as options or futures that have not yet been settled.

Nikolaos Panigirtzoglou and the JP Morgan analysts emphasized that “as a result, we see limited negativity for the crypto market in the short term,” indicating that the short-term outlook is not as bad as it may seem.

The report suggests that the broader decline in the cryptocurrency market, which started after the rally halted in the aftermath of the partial decision in favor of Ripple in the lawsuit filed by the US Securities and Exchange Commission (SEC), can be attributed to the correction in risk asset markets, especially technology stocks, and the bubble in technology, as well as higher US real yields and growth concerns related to China.

SpaceX’s Bitcoin Sale Influenced the Recent Crypto Market Decline

JP Morgan also added that the news of SpaceX, founded and led by Elon Musk, selling the BTC it held in the previous quarter served as an additional catalyst for the recent decline in the cryptocurrency market. The report stated, “All of this news caught investors during a period of intensified long positions.”

The report also mentioned that the SEC appealed the district court’s decision in the Ripple case and the outcome of the appeal is not expected until next year, which could lead to a new period of legal uncertainty for the cryptocurrency market, highlighting the regulatory uncertainty surrounding the crypto market.

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