JPMorgan Chase: The crypto market has limited downside in the short term

Odaily Planet Daily News JPMorgan Chase said in a research report on Thursday that its analysis of CME Bitcoin futures open interest shows that the unwinding of long positions appears to be in the end phase (rather than the beginning phase). "We therefore see limited downside in the crypto market in the short term," wrote analysts led by Nikolaos Panigirtzoglou. The crypto market’s pullback in August “reversed the post-SEC v. Ripple rally” and could be attributed in part to a “broader pullback in risky assets such as stocks, especially technology stocks,” the report said. News of Elon Musk’s SpaceX writing down bitcoin in the last quarter was “another catalyst for a correction in the cryptocurrency market. The news rattled investors with large long positions,” JPMorgan said. The report added that the SEC is appealing the district court’s ruling in the Ripple case, and the outcome of the appeal is not expected until next year, which could trigger “a new wave of legal uncertainty in the crypto market.” (CoinDesk)