A report by JPMorgan Bank says that the cryptocurrency market has reached fundamental values as a result of large-scale liquidation of positions.
The capitulation of traders has ended, and analysts predict a gradual easing of pressure on bitcoin (BTC) and other digital currencies.
The decline in open interest in BTC futures on the Chicago Mercantile Exchange (CME) signals that a new drawdown is quite possible. However, it is likely to be minor.
Sentiment has stabilized, and a limited downturn in the crypto market will not be able to lead to an aggressive capital outflow from digital assets in the near future, JPMorgan Bank believes.
The financial giant also believes that legal uncertainty is negatively affecting bitcoin’s investment appeal.
Economic problems in the U.S. and China are also preventing large capital from entering digital currencies