Yesterday, analysts from JPMorgan expressed positive sentiments about the short-term trajectory of the cryptocurrency markets. Based on their latest analysis, the data on Bitcoin futures suggests that the crypto markets will likely experience “limited downside” in the near term.
Last week, however, the market suffered a setback after news surfaced that Elon Musk’s SpaceX had sold some of its Bitcoin holdings and a major Chinese real estate company declared bankruptcy. These events precipitated significant declines in cryptocurrency values, resulting in the liquidation of $1.04 billion worth of Bitcoin futures contracts. This marked the largest liquidation event since the FTX collapse.
As of today, the open interest for Bitcoin futures, which represents the total number of unexpired futures and options contracts, stands at $8.4 billion. This represents a 27% decline from $11.6 billion on August 17, as per the data from The Block.
JPMorgan analyst Nikolaos Panigirtzoglou noted that liquidations of long positions are “largely behind us.”
The price of Bitcoin currently stands at $26,051, experiencing a marginal decrease of 0.1% over the past 24 hours. Over the last month, the value of the largest digital currency has dipped nearly 12%.
Despite this, the broader outlook for Bitcoin remains positive among many investors. Earlier this year, enthusiasm for Bitcoin surged after financial giant BlackRock applied for a Bitcoin spot ETF. Additionally, Pantera, a $3.5 billion cryptocurrency fund, suggested in a recent note that “if history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.”