Bitcoin Report from JPMorgan Analysts: ‘Institutional Investors Support Bitcoin!’

JPMorgan According to analysts, Bitcoin’in The recent price recovery, which came after a sharp correction earlier this week, was supported primarily by institutional investors.

Bitcoin Backed by Institutional Investors, According to JPMorgan Analysts

Despite a significant drop of over 15% on Monday, institutional interest in Bitcoin futures remains strong and minimal risk reduction is observed.

On Monday, cryptocurrency markets suffered their steepest decline since the FTX crisis, with Bitcoin’s price falling more than 15% before recovering.

JPMorgan analysts, led by managing director Nikolaos Panigirtzoglou, attributed this recovery to continued support from institutional investors.

The report highlighted that these investors have shown limited or no reduction in their Bitcoin futures positions even amid broader market volatility.

JPMorgan’s futures position indicator, which tracks aggregate open interest in CME Bitcoin futures, and the positive futures curve slope suggest a bullish trend among institutional investors.

The premium that Bitcoin futures prices hold over spot prices further underscores this confidence, analysts noted.

There are several factors contributing to this optimism, according to JPMorgan. Last week, Morgan Stanley allowed wealth advisors to recommend spot Bitcoin exchange-traded funds (ETFs) to select clients.

Additionally, the massive liquidations from the Mt. Gox and Genesis bankruptcies are largely behind us, and cash payouts from the FTX bankruptcy are expected to boost demand in the crypto market.

Both major US political parties are signaling support for favorable cryptocurrency regulations, further bolstering institutional trust.

*This is not investment advice.