“The darkest nights often precede the brightest dawns. So seems to be the sentiment at JPMorgan regarding the current fate of Bitcoin.
A burst of optimism in the midst of turbulence
If we had to sum up the last week in one sentence, it might be this: chaos in the crypto market. Surprising news, including the sale of some bitcoin held by SpaceX and the Chinese real estate giant’s bankruptcy filing, sent the market plummeting.
These upheavals culminated in the mass liquidation of bitcoin futures worth $1.04 billion. Additionally, giant Binance has suspended SEPA withdrawals. Yet even in this storm, clues point to a promising future.
According to The Block, recent data shows that bitcoin’s future open interest has declined from $11.6 billion to $8.4 billion in the space of a week. Although this reduction is considerable, JPMorgan’s interpretation of it is, to say the least, unexpected.
Nikolaos Panigirtzoglou, an analyst at JPMorgan, is confident that the majority of long position liquidations are already behind us, suggesting an imminent stabilization of the market.
The horizon does not darken for bitcoin
Bitcoin’s current downtrend, having lost almost 17% in less than two months, could be alarming for some. Nevertheless, Panigirtzoglou’s conviction remains firm. According to him, most of the long position liquidations have already taken place and the impact of positive news is fading. This indicates that the market may be bottoming out.
But the question then arises: why this optimism around bitcoin? Earlier this year, BlackRock, the financial juggernaut, showed interest in a spot Bitcoin ETF. In addition, Pantera, a fund dedicated to cryptocurrency, predicts a surge in bitcoin in the coming months.
Faced with a panorama marked by uncertainty and volatility, the message from JPMorgan analysts is clear: the storm may soon ease for bitcoin. While current trends can give you cold sweats, it’s crucial to keep a long-term perspective and recognize promising signs on the horizon.
The crypto market has always been unpredictable. But as history has shown, after each vertiginous descent, a meteoric rise often follows. Is this the promise of tomorrow for bitcoin? Robert Kiyosaki believes in it.
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