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JPMorgan: BTC Has ‚Limited Downside‘ Amid Regulation Uncertainty

• JPMorgan analysts say that Bitcoin (BTC) has “limited downside” following the correction that took the king crypto to the $25,000 level.
• The report suggests that a large amount of open interest on Bitcoin futures contracts on the Chicago Mercantile Exchange (CME) indicates the end of selling pressure.
• Market participants are awaiting a decision on a spot Bitcoin exchange-traded fund (ETF) and for the U.S. Securities and Exchange Commission (SEC) to appeal its case against payments firm Ripple.

JPMorgan Analysts Say BTC Has Limited Downside

Analysts from JPMorgan have reported that Bitcoin (BTC) currently has “limited downside” following the correction that took it to around $25,000. In a research report seen by Bloomberg, Nikolaos Panigirtzoglou stated that legal and regulatory news caused a wave of selling in recent weeks which is “still reverberating”, but believes this sell-off appears to be at its end phase based on open interest (OI) on Bitcoin futures contracts on the Chicago Mercantile Exchange (CME).

Open Interest Suggests No More Selling Pressure

Panigirtzoglou claims that large OI usually suggests an overly frothy market vulnerable to liquidation cascades, while lower OI may suggest most of the selling pressure is gone. As a result, he sees limited downside for crypto markets over near term as long as OI remains low.

Awaiting SEC’s Decision On Ripple Case

Market participants are currently waiting for two decisions: one concerning a spot Bitcoin exchange-traded fund (ETF), and another regarding results from U.S Securities and Exchange Commission’s case against payment firm Ripple. The SEC sued Ripple late 2020 for allegedly selling XRP as unregistered security; however they only received partial victory last month due to legal uncertainty surrounding crypto markets making them sensitive to further developments in this case.

Bitcoin Trading At $26K

At time of writing, Bitcoin was trading at 26001 USD according to reports from various sources across media outlets including Bloomberg and Twitter Feeds etc..

Conclusion

In conclusion, analysts from JPMorgan have suggested that there is limited downside for cryptomarkets over near term with expectation of upcoming decisions by US Securities & Exchange Comission pertaining to spot bitcoin ETF , Ripple case etc.. Furthermore , current trading price of bitcoin is around 26001 USD .