As the search for direction continues in the crypto money markets, a new report has come from the US banking giant JP Morgan.
Stating that Bitcoin and altcoins have experienced a major liquidation in the last correction, JP Morgan argued that the difficult stage has come to an end.
Analyzing the situation of CME Bitcoin futures positions, JP Morgan analysts pointed out that the liquidation of long positions is in the process of completion.
As a result of their analysis, JPMorgan analysts led by Nikolaos Panigirtzoglou said:
“Last week there was a major correction and liquidation in the cryptocurrency market.
But the difficult stage has most likely passed.
At this point, as a result, we see limited negativities in the crypto money markets in the near term.”
It was stated that the correction experienced in Bitcoin and altcoins can be attributed in part to the broader correction in stocks and risk assets such as technology stocks in particular.
JPMorgan analysts also stated that news that Elon Musk's company SpaceX sold Bitcoin in the previous quarter also accelerated the correction.
“The news that Elon Musk's company SpaceX had sold Bitcoin in the previous quarter served as an additional catalyst for the correction in the crypto markets.”
Finally, evaluating the SEC's appeal against the Ripple decision, analysts emphasized that the appeal result will not come out until next year, so waiting for the appeal result will create a new period of legal uncertainty for the crypto markets.