The cryptocurrency market has been grappling with a prolonged period of bearish sentiment, marked by substantial price declines across major digital assets. However, a glimmer of hope emerges as JPMorgan’s latest research indicates that the wave of long position liquidations might be nearing its conclusion.
As reported by Bloomberg, JPMorgan analysts have noted that the cascade of long position liquidations, which had contributed to the market’s downward spiral, is “largely behind us.” This optimism stems from observations surrounding the open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME).
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JPMorgan report cites a drop in Bitcoin open interest
The analysts at JPMorgan have tied the declining open interest in Bitcoin futures to a potential easing of the current selling trend. This implies that the selling pressure might be losing steam, hinting at a potential reversal or stabilization in prices. While this doesn’t guarantee an immediate turnaround, it does provide an indication that the market’s bearish momentum could be waning.
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The report comes at a time when the prices of cryptocurrencies are in a bearish stance. Bitcoin plunged from a one-month high of $30,000 to a low of $25,409 before climbing to its current price of $26,072. Prominent altcoins also took a hit as they exhibited a similar downtrend in comparison to Bitcoin.