• JPMorgan analysts say that the worst of Bitcoin’s recent correction is behind us.
• The sell-off appears to be at its end phase according to open interests on CME Bitcoin futures contracts.
• Market participants are awaiting a decision on a spot Bitcoin ETF and for the SEC to appeal their case against Ripple.
Worst of Recent Bitcoin (BTC) Correction Largely Behind Us: Report
JPMorgan analysts say that the worst of Bitcoin (BTC)’s recent correction is largely behind us, according to a research report seen by Bloomberg. Nikolaos Panigirtzoglou states that legal and regulatory news caused a wave of selling in recent weeks which is “still reverberating.” Despite this, he notes that open interest (OI) on Bitcoin futures contracts on the Chicago Mercantile Exchange (CME) suggests limited downside for crypto markets in the near term.
Open Interest Suggests Limited Downside
Panigirtzoglou says that a large amount of OI on futures typically indicates an overly frothy market vulnerable to liquidation cascades, while lower OI may suggest that most of the selling pressure has been left in the near term. He adds, “As a result, we see limited downside for crypto markets over the near term.”
Awaiting Decision On Spot Bitcoin ETF & SEC Appeal Against Ripple
Market participants are currently waiting for two key developments – a decision on spot Bitcoin exchange-traded fund (ETF) and for the U.S. Securities and Exchange Commission (SEC) to appeal their case against payments firm Ripple. The SEC sued Ripple late last year over allegations that they sold XRP as an unregistered security and received only partial victory last month – leading to anticipation of an appeal from them creating “new round of legal uncertainty” for crypto markets making them sensitive to further developments.
Bitcoin Trading At $26,001 At Time Of Writing
At time of writing, Bitcoin is trading at $26,001 – suggesting an uptrend following its dip towards $25,000 during its correction period earlier this month.