Main navigation

Banking Giant JPMorgan Unfazed by Crypto Downturn

Thu, 08/31/2023 - 07:08
article image
Alex Dovbnya
JPMorgan Chase & Co. has released a research report suggesting that the cryptocurrency market's recent downturn, notably Bitcoin's decline may be nearing its end
Banking Giant JPMorgan Unfazed by Crypto Downturn
Cover image via
Read U.TODAY on
Google News

A new research report from JPMorgan Chase & Co. indicates that the recent downward spiral in cryptocurrency markets may soon abate.

Nikolaos Panigirtzoglou has pointed to the decline in open interest in CME Bitcoin futures contracts as a sign that the sell-off might be nearing its conclusion.

Open interest—defined as the number of unsettled and active futures contracts trading on exchanges—serves as an indicator of a price trend's momentum. A decline in open interest generally suggests that the price trend is losing steam, thus signaling a limited downside for crypto markets in the near term.

Still in bull territory?  

Notably, JPMorgan's view is in line with that of anonymous cryptocurrency analyst Dave the Wave. In a recent post on X (formerly Twitter), Dave the Wave highlighted that Bitcoin's weekly Moving Average Convergence Divergence (MACD) is still above the zero-line, suggesting the cryptocurrency is still in bull territory. Unlike the steep rise outside of the Low Ground Cover (LGC) buyzone observed in 2019, the current MACD patterns indicate a lower risk of a drastic correction back to the buyzone. Dave the Wave anticipates that the MACD will bounce off the zero-line and maintain its bullish stance.

Lackluster price action 

After spiking to $28,000, Bitcoin's price recently retreated to the $27,000 level, even in light of positive news from Grayscale Investments.

Dogecoin and Bitcoin Get Boost from Robinhood

As reported by U.Today, prominent analyst Mike McGlone recently opined that $30,000 may be the new $12,000 for the largest cryptocurrency. 

Considering that the Fed is still determined to tame inflation, Bitcoin might keep struggling to stage an impressive rally.   

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at