Analysts anticipate a deceleration in the selling trend
JPMorgan’s analysts have recently predicted that the cryptocurrency market’s decreasing open interest may be an indication of a weakening price trend. However, they believe that the liquidations are largely behind us and expect the selling trend to decelerate. As a result, they foresee limited downside for crypto markets in the near term.
Declining optimism and regulatory uncertainties impact the market
The recent downtrend in the cryptocurrency market has been influenced by declining optimism surrounding regulatory developments in the United States. Despite positive developments, such as applications for the first U.S. exchange-traded funds (ETFs) linked to Bitcoin’s spot price, the market sentiment is slowly fading. Traders are eagerly awaiting Bitcoin ETF decisions and the SEC’s appeal against Ripple, which has introduced renewed uncertainty.
External factors exacerbate the legal uncertainty in the crypto market
In addition to regulatory concerns, external factors such as rising U.S. real yields and worries about China’s economic growth have also contributed to the decline in the crypto market. These circumstances contribute to a new round of legal uncertainty and make the market sensitive to future developments.
Read more here at https://cointelegraph.com/news/jpmorgan-forecasts-limited-downside-crypto-markets
