The bitcoin market has begun a “recovery” process. This conclusion was made by JPMorgan analysts in their new report, writes Bloomberg. Despite the fact that bitcoin is still far from the highs, cryptocurrencies are gradually recovering from the crash.
“The cryptocurrency market is not yet completely healthy, however, the healing process has already begun,” said analysts Josh Younger and Veronica Mejia Bustamante.
For example, JPMorgan strategists called the lack of activity in the futures market “a positive factor.” According to the ByBt resource, after the Bitcoin price fell on May 19, the futures market stopped giving in to volatility.
At the time of this writing, the total open interest in bitcoin futures is $ 11.4 billion.
However, the short-term outlook, according to strategists, is extremely “difficult”. In particular experts refer to on-chain data. They confirm that traders were selling coins to cover losses. Analysts also believe that there are still “underwater positions” in the market that the market should get rid of. However, it is unclear what level bitcoin must reach for a complete “healing”.
Earlier, JPMorgan predicted a further drop in bitcoin. For example, the bank said that the fair value of bitcoin in the medium term is estimated in the range of $ 23,000 to $ 35,000. Moreover, experts believe that the upcoming sale of shares of the Grayscale Bitcoin Trust will increase pressure on the price of the cryptocurrency.
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