The cryptocurrency market appears to be recovering from its recent downtrend, according to JPMorgan’s latest research. Analysts for the American bank estimate that the liquidations of long positions are “largely behind us”, based on the open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME). Open interest serves as an indicator of market sentiment and the strength of price trends, and the decline in Bitcoin’s open interest suggests that the current price trend could be weakening.The downtrend in crypto prices has been attributed to declining optimism around regulatory developments in the United States, as well as external market conditions such as rising U.S. real yields and concerns about China’s economic growth. Positive developments in the previous months, such as a series of applications for the first U.S. exchange-traded funds (ETFs) linked to Bitcoin’s spot price, and Ripple Labs’ partial victory against the United States Securities and Exchange Commission (SEC), have boosted Bitcoin’s price. However, this optimism is gradually fading as traders await Bitcoin ETF decisions and the SEC’s appeal against Ripple brings renewed uncertainty. This has created a “new round of legal uncertainty” for crypto markets, making them sensitive to future developments.

Information	Details
Geography	North America
Countries	🇺🇸 🇨🇳
Sentiment	neutral
Relevance Score	10
People	None
Companies	Chicago Mercantile Exchange (CME), BlackRock, Fidelity, ARK Investments, 21Shares, United States Securities and Exchange Commission (SEC), Ripple Labs, Bitcoin ETF
Currencies	Bitcoin, Ethereum, USD, CME, Ripple
Securities	None