Latest AI and Crypto Markets: JPMorgan Forecasts Limited Downside

Recent Crypto Downtrend Might Be Coming to an End

Recent developments in the cryptocurrency market suggest that the downtrend might be coming to an end. According to JPMorgan’s analysis, most of the liquidations of long-position investments have been completed. Bloomberg reported that analysts for the American bank estimate that the liquidations are “largely behind us.” This prediction is based on the open interest in Bitcoin (BTC) futures contracts on the Chicago Mercantile Exchange (CME), which indicates that the selling trend might soon decelerate.

Open interest, which refers to active futures contracts, serves as an indicator of market sentiment and the strength of price trends. As a result, the decrease in Bitcoin’s open interest is seen as a sign that the current price trend could be weakening. Analysts believe that this could lead to “limited downside for crypto markets over the near term.”

The crypto market has been on the downtrend in recent weeks due to declining optimism around regulatory developments in the United States. As of Aug. 26, Bitcoin is trading close to $26,000, down 11.27% over the past 30 days, according to Cointelegraph Markets.

The latest research from JPMorgan could be a sign that the crypto market may soon be back on the rise, as the research suggests that the liquidations are largely behind us. This could be a good opportunity for investors to take advantage of the latest developments in the crypto.com, sec crypto, crypto websites, brise crypto, breaking crypto, crypto reddit, crypto com, tonic crypto, latest ai, and ach crypto markets.

Crypto Market Impacted by Positive Developments and Uncertainty

The crypto market has seen a surge of positive developments in recent months, including a series of applications for the first U.S. exchange-traded funds (ETFs) linked to Bitcoin’s spot price from major players such as BlackRock, Fidelity, ARK Investments and 21Shares. Ripple Labs’ partial victory against the United States Securities and Exchange Commission (SEC) was also a contributing factor.

However, this optimism is gradually fading as traders await decisions on Bitcoin ETFs and the SEC’s appeal against Ripple brings renewed uncertainty. This creates a “new round of legal uncertainty” for crypto markets, making them sensitive to future developments, according to JPMorgan’s team. External market conditions, such as rising U.S. real yields and concerns about China’s economic growth, are also impacting the crypto market.