Based

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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">JPMorgan, one of the biggest banking giants in the world, <a href="https://www.barrons.com/articles/bitcoin-price-news-crypto-correction-f94e4009" target="_blank" aria-label="believes near-term risks (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">believes near-term risks</a> for the crypto market are limited. The global crypto market cap <a href="https://www.coingecko.com/en/global-charts" target="_blank" aria-label="lost around 11% (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">lost around 11%</a> over the past 30 days due to several factors like diminished market activity, high interest rates, and <a href="https://tokenist.com/sec-delays-arks-bitcoin-spot-etf-application-whats-next/" rel="dofollow" class="deco-link">uncertainty around spot bitcoin exchange-traded fund (ETF) applications</a>.&nbsp;</p> 
<h3 id="jpmorgan-says-liquidations-of-long-positions-are-likely-over">JPMorgan Says Liquidations of Long Positions Are Likely Over</h3> 
<p>The global crypto market cap plummeted around 11% over the past month amidst the latest downturn. According to CoinGecko data, the market cap plummeted from $1.23 trillion to $1.09 trillion, marking the lowest level since mid-June.</p> 
<p>Over this period, Bitcoin (BTC) retreated to roughly $26,000, declining from nearly $30,000 earlier this month. Other major altcoins also witnessed significant losses, with Ethereum (ETH), XRP, and Cardano (ADA) declining by more than 10%, 25%, and 13.3%, respectively.</p> 
<p>However, strategists at Wall Street giant JPMorgan believe the worst may be over for cryptocurrency prices. Based on the bank’s analysis of CME bitcoin futures positions, the recent <a href="https://www.coinglass.com/LiquidationData" target="_blank" aria-label="liquidations of long positions (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">liquidations of long positions</a> appear to be coming to an end.</p> 
<blockquote class="wp-block-quote"> 
 <p>“As a result, we see limited downside for crypto markets over the near term.”</p> <cite>– JPMorgan analysts said in a note.</cite>
</blockquote> 
<p>JPMorgan said investors have been accumulating long positions in the aftermath of positive developments such as recent Ripple’s partial victory against the SEC, <a href="https://tokenist.com/paypal-to-launch-stablecoin-backed-by-us-dollar-deposits-and-t-bills/" rel="dofollow" class="deco-link">PayPal’s foray into stablecoins</a>, and expectations that the US regulators will approve the spot bitcoin ETF applications. The upcoming Bitcoin halving event in 2024 also added to optimism.&nbsp;</p> 
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<h3 id="economic-issues-weighing-on-investors-sentiment">Economic Issues Weighing on Investors’ Sentiment</h3> 
<p>The crypto market slump comes due to a mixture of factors, including those related to the US economy. Notably, the latest hike by the Federal Reserve took interest rates to the highest level since 2001, while inflation remains above the central bank’s desired 2% target.</p> 
<p>Meanwhile, borrowing costs for families and businesses have increased, putting further pressure on consumer spending and the country’s economic growth. As a result, consumers find it increasingly difficult to save money, forcing some of them to offload their investments.&nbsp;</p> 
<p>In the meantime, hopes of a potential <a href="https://tokenist.com/investing/bitcoin-etf/" rel="dofollow" class="deco-link">spot bitcoin ETF</a> launch were thwarted last week after the SEC continued to delay its decision, citing worries over the lack of safeguards against manipulation.&nbsp;</p> 
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<p><em><strong>Do you agree with JPMorgan’s views that the crypto prices have likely bottomed? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/crypto-market-cap-tumbles-11-in-a-month-but-jpmorgan-sees-limited-downside/">Crypto Market Cap Tumbles 11% in a Month but JPMorgan Sees ‘Limited Downside’</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Crypto Market Cap Tumbles 11% in a Month but JPMorgan Sees ‘Limited Downside’

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