Home Business Largest bank in the world: Another crypto crash unlikely

Largest bank in the world: Another crypto crash unlikely

Bitcoin hater doesn't believe recent BTC surge will last

The major American bank JPMorgan recently carried out investigations into this open interests In Bitcoin (BTC) futures. Specifically, the bank looked at the Chicago Mercantile Exchange (CME), one of the world’s largest derivatives exchanges, where financial instruments such as futures and options are traded.

According to JPMorgan, the number is coming lung to exit positions in futures contracts reports Coindesk In other words, investors who previously bet on the price going up (long positions) have largely closed their bets or already sold their positions. When many investors close their long positions at the same time, this leads to an increased supply of the asset in the market and creates selling pressure.

Given these developments, JPMorgan analyst Nikolaos Panigirtzoglou expects the price of the digital currency to stop falling further. The analyst remains optimistic in the short term crypto market and sees limited downside risk.

Crypto market under pressure

The correction in crypto markets in August was due to several factors. Part of the cause is American in nature Securities and Exchange Commission (SEC), which doesn’t seem particularly interested in accepting a bitcoin spot ETF for now. The economic recession in several places around the world, for example in the Netherlands, America and China, is also not helping. In addition, care the lawsuit between the SEC and Ripple still for uncertainty in the market.

Crucial time for BTC is coming

In addition, the coming months are important accordingly the American Bank. JPMorgan is calling the upcoming halving a “stress test” for miners amid increased production costs and falling revenue. Historically, this phenomenon is often accompanied by a significant surge in the price of bitcoin, fueling investor optimism.

For miners, however, the upcoming halving is a time of growing concern. According to recent data, half of them may not survive the event as the cost per mined bitcoin increases. If the group of the largest miners is to be able to cover the electricity costs, they must BTC course must increase to at least $40,000.

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