Bitcoin (BTC) has “limited downside” following a recent correction that saw the cryptocurrency drop to the $25,000 level, according to analysts from JPMorgan. The sell-off, which was triggered by legal and regulatory news, appears to be coming to an end, as indicated by the open interest (OI) on Bitcoin futures contracts on the Chicago Mercantile Exchange (CME). Lower OI suggests that most of the selling pressure has been alleviated in the near term. As a result, JPMorgan analysts see limited downside for crypto markets in the coming months.
Market participants are now eagerly awaiting a decision on a spot Bitcoin exchange-traded fund (ETF) and for the U.S. Securities and Exchange Commission (SEC) to appeal the results of its case against payments firm Ripple. The SEC sued Ripple in late 2020, alleging that the firm sold XRP as an unregistered security. The SEC received a partial victory in the case last month, and the anticipation of its appeal has created a new round of legal uncertainty for the crypto markets, making them sensitive to further developments.
At the time of writing, Bitcoin is trading at $26,001. Investors are advised to do their due diligence before making any high-risk investments in Bitcoin or other cryptocurrencies. Transfers and trades are at the investor’s own risk, and any losses incurred are their responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets and is not an investment advisor.