Republican

Based

Bitcoin

Optimism

One of the notable events in cryptocurrency history this year which saw the<a href="https://thecoinrise.com/bitcoin-drives-crypto-market-caps-biggest-drop-in-2-years/" rel="noopener noreferrer nofollow"> crypto market print its biggest drop</a> in about two years has left many in shock. As analysts try to understand the financial incident,<a href="https://www.theblock.co/post/310227/jpmorgan-bitcoin-rebound-institutional-investors" rel="noopener noreferrer nofollow"> JPMorgan’s analysts</a> say Bitcoin’s rebound occurred due to the confidence institutional investors have on the digital asset’s futures.
<h2 id="b-institutional-investors-maintain-bitcoin-optimism-b">Institutional Investors Maintain Bitcoin Optimism</h2>
According to them, most institutional investors were uninterested in de-risking in Bitcoin futures contracts while many traders dumped their assets on the market. Specifically, data from the multinational finance company’s futures position indicator, reveals exciting times ahead. This indicator which tracks cumulative open interest in CME Bitcoin futures contract as well as the positive slope of the futures curve shows that institutional investors remain bullish on the asset.
Nikolaos Panigirtzoglou, managing director at<a href="https://thecoinrise.com/jpmorgan-sees-goldmine-in-crypto-dip-market-rebound-on-the-horizon/" rel="noopener noreferrer nofollow"> JPMorgan in a report stated that investors remains optimistic</a> in a higher Bitcoin futures price premium. Bitcoin had dropped by over 15% before its rebound in a market movement that shocked many amid a highly anticipated bullish August based on predictions.
<h2 id="b-key-factors-behind-institutional-optimism-b">Key Factors Behind Institutional Optimism</h2>
Based on the broader market activities, some notable factors responsible for investors’ confidence include the<a href="https://thecoinrise.com/kraken-halts-mt-gox-repayment-process-for-creditors/" rel="noopener noreferrer nofollow"> completion of liquidation of Mt. Gox</a> and Genesis bankruptcies. Additionally, investors have bet on the forthcoming FTX payments later in the year to trigger a significant demand in the digital asset market.
Another positive indicator boosting institutional investors’ confidence lies in politics. Ahead of the U.S. presidential election in November, both the Republican and Democratic parties have signaled support for favorable crypto regulation, a pivot from previous stance.
<h2 id="b-analysts-advise-caution-amidst-price-volatility-b">Analysts Advise Caution Amidst Price Volatility</h2>
Despite these sentiments, JPMorgan analysts have advised investors to maintain caution regardless of the price corrections. Notably, the price of Bitcoin had dipped to the $49,000 level before it resurged to over $57,000 after the correction. The analysts highlighted that if prices had plummet further than that, it would have increased pressure Bitcoin miners and forced a sharper decline in price.
At the time of writing,<a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow"> data</a> from CoinMarketCap shows Bitcoin trading for $57,511.72, a 0.99% increase in the last 24 hours.
The post <a href="https://thecoinrise.com/institutional-embrace-propels-bitcoin-rebound-says-jpmorgan/" rel="noopener noreferrer nofollow">Institutional Embrace Propels Bitcoin Rebound, Says JPMorgan</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Institutional Embrace Propels Bitcoin Rebound, Says JPMorgan

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