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JPMorgan: Bitcoin futures prices hint at market decline

Analysts at the investment bank JPMorgan noted the difference between the prices of bitcoin in the derivatives market and in the futures market, which indicates a possible depreciation of the first cryptocurrency.

In a letter to investors, a team of JPMorgan analysts led by Nikolaos Panigirtzoglou warned that the Bitcoin market has returned to a reversal. This is a situation when prices in the derivatives market are higher than the prices of asset futures. This happened for the first time since 2018, when the rate of the first cryptocurrency fell by 74% in a year, and this is a rather bearish signal for traders.

“We believe that a return to a reversal position is a negative signal indicating a bear market. In our opinion, the situation is very similar to the situation in 2018, ”- noted analysts at JPMorgan.

Researchers analyzed the 21-day moving average of the Bitcoin futures and derivatives markets. They found “unusual developments reflecting weak demand for bitcoin from institutional investors” trading BTC futures on the Chicago Mercantile Exchange (CME).

Another bearish signal is the decline in the dominance of bitcoin in the cryptocurrency market. If in January the indicator exceeded 70%, then by the end of May the dominance dropped to 40%. At the moment, the dominance of bitcoin is 44.12%. BTC is trading in the region of $ 37,300, and the capitalization of the first cryptocurrency is $ 698 billion.

Earlier, a JPMorgan analyst predicted that in the short term, the rate of the first cryptocurrency could fall to $ 24,000, but then bitcoin will begin another growth cycle, during which it may well reach $ 145,000.

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