Key Points:
Drawing upon their analysis of CME bitcoin futures positions, which function as a reliable proxy, JPMorgan experts discerned a noteworthy trend. Rather than being in its nascent stages, the unwinding of long positions appears to be nearing completion. This observation forms the bedrock of JPMorgan’s assertion that the crypto markets are poised for a phase of limited downside over the immediate horizon.
The ebbs and flows of recent positive developments catalyzed a surge in crypto traders establishing long positions. Key events such as the XRP ruling, the introduction of PayPal’s stablecoin, the prospective approval of spot bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission, and early moves preceding the forthcoming bitcoin halving event fueled this wave.
However, the landscape shifted as positive news receded. The SEC deferred its verdict on spot bitcoin ETF approvals, the XRP ruling faced an appeal, and stringent regulatory discussions encircled stablecoins. This shift precipitated a cascade of long position liquidations that reverberated across the market. Yet, the JPMorgan analysts note that the unwinding of these positions seems to be at its conclusion, signaling a potential turning point.
The month’s crypto market correction aligned with a broader recalibration in risk assets, encompassing equities and tech stocks. JPMorgan posits that this collective shift was driven by overexuberant positioning in technology, amplified U.S. real yields, and apprehensions concerning China’s economic trajectory. Additionally, the disclosure of SpaceX’s bitcoin liquidation in the past year further spurred the corrective course in the crypto markets.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Majuro, Marshall Islands, May 15th, 2024, ChainwireMultipool, a leading innovator in the blockchain and cryptocurrency…
Despite a recent drop, GME calls targeted massive gains with $100 and $128, as per…
ETH/BTC ratio crashes to a low of 0.046, last seen in April 2021. Ethereum's position…
DOJ charges brothers Anton and James Peraire-Bueno for a $25 million Ethereum blockchain attack.
Van Buren Capital's Scott Johnsson suggests spot Ethereum ETF rejections may precede SEC's May 23…
The dydx Foundation has recently disclosed a pivotal update on its official blog, revealing the…
This website uses cookies.