Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
JPMorgan Chase &. Co. (NYSE: JPM) analysts say the decline in long positions in the Chicago Mercantile Exchange's (CME) Bitcoin (CRYPTO: BTC) futures might be nearing its conclusion.
The analysts focused on open interest, which denotes the total number of unsettled derivative contracts like futures or options. Under the helm of managing director Nikolaos Panigirtzoglou, the JPMorgan team sees "limited downside for crypto markets over the near term.”
This month's crypto market downturn was partially due to a wider correction in risk assets, especially tech stocks, they explained.
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Frothy positioning in tech, higher U.S. real yields, and "growth concerns about China,” influenced the correction.
Elon Musk's decision to write off SpaceX's Bitcoin holdings from the last quarter also served as a catalyst. Investors dealt with "an overhang of long positions."
Lastly, the ongoing legal back-and-forth between the U.S. Securities and Exchange Commission and Ripple (CRYPTO: XRP) might introduce a "new round of legal uncertainty for crypto markets" over the next year.
For the full story, see CoinDesk.
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