Most Liquidations Completed, Marking a Positive Turn
The recent downtrend in the cryptocurrency market may be coming to a close, according to analysts from JPMorgan. The American bank's latest research suggests that most long-position liquidations have already taken place.
Open Interest in Bitcoin Futures Contracts Points to Weakening Selling Trend
The prediction by JPMorgan is based on the open interest in Bitcoin (BTC) futures contracts on the Chicago Mercantile Exchange (CME). Analysts believe that the decline in open interest indicates that the selling trend may soon decelerate. Open interest serves as an indicator of market sentiment and the strength of price trends.
Optimism Declines as Regulatory Developments Take Their Toll
The recent decline in crypto prices can be linked to declining optimism around regulatory developments in the United States. This has weighed heavily on the market in recent weeks. As of August 26, Bitcoin is trading close to $26,000, down 11.27% over the past 30 days.
Positive Developments Boosted Bitcoin's Price in Previous Months
Bitcoin's price was boosted by several positive developments in recent months. Applications for the first U.S. exchange-traded funds (ETFs) linked to Bitcoin's spot price generated optimism. Major players like BlackRock, Fidelity, and ARK Investments are waiting for regulatory approval.
Ripple Labs' Victory Against SEC Fades Amidst Uncertainty
Ripple Labs' partial victory against the United States Securities and Exchange Commission (SEC) was a positive development, but optimism is gradually fading. Traders are now eagerly awaiting Bitcoin ETF decisions and the SEC's appeal against Ripple, which has brought renewed uncertainty.
Legal Uncertainty and External Factors Continue to Impact Crypto Markets
JPMorgan's analysis suggests that crypto markets are entering a "new round of legal uncertainty." This makes them highly sensitive to future developments. External factors, such as rising U.S. real yields and concerns about China's economic growth, have also contributed to the decline in the crypto market.
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