JPMorgan Chase stated that the recent sharp sell-off in the cryptocurrency market may be largely over.
Bank analyst Nikolaos Panigirtzoglou said that outflows from Bitcoin and Ethereum ETFs had slowed significantly since January, and that positioning indicators in the futures market suggested that investor selling would largely occur by the end of 2025.
According to JPMorgan, market liquidity remains strong. The bank stated that the primary cause of the current correction is not market-related stress, but rather risk mitigation measures triggered by MSCI’s October announcement that crypto-related companies could be delisted from indices.
MSCI’s recent decision not to exclude crypto-related companies from its global equity index review in February 2026 provided short-term relief for the market. JPMorgan stated that this decision reduced the risk of potential forced sell-offs due to index changes and strengthened expectations of a bottom formation in the crypto market.
*This is not investment advice.
