JPMorgan Believes the Bitcoin Market Has Reached Its Bottom
Analysts at JPMorgan are bullish on Bitcoin’s near-term prospects because they see “limited downside.”
Yesterday, experts at JPMorgan expressed hope for the cryptocurrency markets in the near future. They concluded that there is “limited downside for crypto markets in the near term” based on an examination of Bitcoin futures data.
SpaceX, led by Elon Musk, sold off part of its bitcoin assets last week, while a major player in China’s real estate industry filed for bankruptcy, both of which sent the market reeling. As a result of these happenings, cryptocurrency values dropped, causing $1.04 billion in bitcoin futures contracts to be liquidated. This liquidation event is the largest since the FTX crash.
“largely behind us,” JPMorgan analyst Nikolaos Panigirtzoglou said of the liquidation of long positions. The current price of Bitcoin is $26,051, down 0.1% in the previous 24 hours. The leading cryptocurrency’s value has dropped by about 12% in the previous month.
However many Bitcoin investors still believe the big picture is positive. The application of financial giant BlackRock for a Bitcoin spot ETF sparked a surge of excitement about Bitcoin earlier this year. According to a report published this week by Pantera, a $3.5 billion cryptocurrency firm, “if history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.”