The cryptocurrency market's recent downtrend appears to be coming to an end, with the latest JPMorgan research showing that most of the liquidation of long positions is complete.
Predictions based on Bitcoin Futures Contract open interest on the Chicago Mercantile Exchange (CME), suggest that the selling trend may soon decelerate. Open interest, which refers to active Futures Contract , Vai as an indicator of market sentiment and the strength of price trends.
According to analysts, the decline in Bitcoin's open interest is seen as a sign that the current price trend may be weakening.
The report states that cryptocurrency prices have been trending downward in recent weeks due to decreasing optimism surrounding regulatory developments in the US. On August 26, Bitcoin was trading at nearly $26,000, down 11.27% over the past 30 days.
Positive developments in previous months have boosted Bitcoin prices. Among them is a series of applications for the first US exchange-traded funds (ETFs) linked to the spot price of Bitcoin. The list of companies awaiting regulatory approval includes BlackRock, Fidelity, ARK Invest and 21Shares, among others.
Ripple Labs' partial victory against the Securities and Exchange Commission (SEC) is another positive development. However, this optimism is gradually fading, the analyst noted as traders await Bitcoin ETF decisions and the SEC's appeal against Ripple brings fresh uncertainty.
According to the JPMorgan team, this scenario contributes to creating a "new round of legal uncertainty" for the cryptocurrency market, making the market sensitive to future developments. External market conditions also played a Vai in the cryptocurrency market decline, including rising US real yields and concerns about China's economic growth.
Source: Cointelegraph
