A report from JPM late last week says the downside shift for Bitcoin looks to be ending.
JPM cite their analysis of open interest in Chicago Mercantile Exchange’s (CME) bitcoin (BTC) futures:
- shows the unwinding of long positions appears to be in its end phase rather than its beginning
- “As a result we see limited downside for crypto markets over the near term,”
- the move in crypto markets in August, “which reversed the post Securities and Exchange Commission (SEC) versus Ripple court decision rally” can be partly credited to the “broader correction in risk assets such as equities and in particular tech, which in turn appears to have been induced by frothy positioning in tech, higher U.S. real yields and growth concerns about China”
Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled.