Bitcoin supply on exchanges hits six-year low
In an unexpected turn of events for the cryptocurrency world, Finbold has...
The worst part of the continuing slide in the price of Bitcoin, in the opinion of a JPMorgan analyst, is now behind us.
It’s important to note that not all cryptocurrencies, including Bitcoin, are free of problems. The closure of numerous long positions, according to Nikolaos Panigirtzoglou, is to blame for the recent weakening of the most important cryptocurrency in the world.
These positions were closed when the excitement sparked by encouraging news, such as the likely approval of a Spot Bitcoin ETF, began to wane. He did emphasize, though:
“This unwinding of long positions appears to be at its end phase rather than its beginning. As a result, we see limited downside for crypto markets over the near term.”
There are other risky assets that have had a more difficult few weeks than Bitcoin. The entire technology sector has been impacted by worries about China and rising real yields in the US. For instance, the Nasdaq Composite index has decreased from its most recent top by about 7.0%.
Why do investors choose to exercise caution and avoid taking part? Panigirtzoglou agrees that there have been beneficial changes in the cryptocurrency sector, like the creation of “Base” by Coinbase Global Inc. and the introduction of PayPal Holdings’ own stablecoin pegged to the dollar.
However, investors are opting to stay on the sidelines and await regulatory clarity. Part of the reason for this cautious approach is that the Securities and Exchange Commission (SEC) has filed an appeal against the recent decision that favoured Ripple, as outlined in his research note today.
“Appeals could result in a trial with an outcome not expected until next year, inducing a new round of legal uncertainty for crypto and making them sensitive to any mid-process news.”
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