JPMorgan analysts reported a signal indicating the end of the crypto market correction
Over the past few days, selling pressure on major cryptocurrencies has eased and coin prices have stabilized, experts noted.
“Signs of a January bottom are also visible in other crypto indicators related to perpetual futures and positions on the Chicago Mercantile Exchange,” JPMorgan said.
The analysts also pointed out that a significant reduction in liquidity in the crypto market — as previously assumed — did not occur. Liquidity levels remained within normal ranges. The negative price movement was driven solely by panic among retail traders and investors.
Most of the cryptocurrency sell-off is now behind us. The market has reached a local bottom, and a new phase of declining digital asset prices is unlikely, the analysts concluded.
Earlier, Bitwise Chief Investment Officer Matt Hougan stated that the price growth of major cryptocurrencies would depend on several factors, including conditions in equity markets and changes in U.S. legislation.
See also: "Matt Hougan named two main reasons for the growth of the crypto market"
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