Bitcoin Dip Doesn't Worry JPMorgan Analysts: 'We See Limited Downside To Crypto'

On Saturday morning, Bitcoin BTC/USD was valued at roughly $26,043.51, down by a percent in the last seven days.

But over the preceding two weeks, the leading cryptocurrency experienced a dip of close to 12%, following a month of relative stability.

JPMorgan Chase & Co. JPM analysts are optimistic that the cryptocurrency market's recent decline might be approaching its finale.

This observation stems from the diminishing open interest in CME Bitcoin futures contracts, a sign that often hints at a fading price momentum.

The analysts "see limited downside for crypto markets over the near term.”

Also Read: Analyst Who Predicted May 2021 Crypto Crash Now Says Bitcoin Set To Surge To This Price By 2024

Earlier this season, the crypto realm witnessed an upswing, propelled by several encouraging industry events. A series of applications, championed by BlackRock Inc. BLK, aspired to roll out the inaugural U.S. exchange-traded funds (ETFs) correlated with Bitcoin's immediate price.

Moreover, a district court's decision favoring Ripple Labs in its legal tussle with the Securities and Exchange Commission (SEC) uplifted the wider market's spirits.

Yet, the initial fervor surrounding these happenings is diminishing. The crypto world is now in anticipation mode, awaiting verdicts on the greenlighting of spot Bitcoin ETFs and the SEC's countermove against the Ripple court ruling.

The analysts project that the Ripple case's final judgment might be postponed until the forthcoming year, introducing a phase of "legal ambiguity" for the crypto domain.

The study also links the crypto market's retraction to a more extensive correction in risk assets, like equities. Elements such as the tech sector's inflated valuation, surging US real yields, and apprehensions about China's economic trajectory have been influential.

Now Read: Crypto Analyst Confident About Bitcoin's Surge, But There's A Catch

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.