Share this article
JPMorgan Sees Limited Downside for Crypto Markets in the Near Term
News that Elon Musk’s SpaceX had written off some of its bitcoin holding in the previous quarter acted as an additional catalyst for the correction in crypto markets in August, the report said.
Updated Aug 25, 2023, 3:56 p.m. Published Aug 25, 2023, 8:58 a.m.
Analysis of open interest in Chicago Mercantile Exchange’s (CME) bitcoin futures shows that the unwinding of long positions appears to be in its end phase rather than its beginning, JPMorgan (JPM) said in a research report on Thursday.
Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“As a result we see limited downside for crypto markets over the near term,” analysts led by Nikolaos Panigirtzoglou wrote.
The correction in crypto markets in August, “which reversed the post Securities and Exchange Commission (SEC) versus Ripple court decision rally” can be partly credited to the “broader correction in risk assets such as equities and in particular tech, which in turn appears to have been induced by frothy positioning in tech, higher U.S. real yields and growth concerns about China,” the report said.
JPMorgan said that the news of Elon Musk’s SpaceX writing off its bitcoin holding in the previous quarter acted as an “additional catalyst for the correction in crypto markets.”
“These news caught up investors with an overhang of long positions,” the note said.
The SEC is appealing against the district court’s ruling in the Ripple case and with the outcome of the appeal not expected until next year, this could induce a “new round of legal uncertainty for crypto markets,” the report added.
Read more: Bitcoin Spot ETF Approval Could Help Power up a New Crypto Cycle: Bernstein
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin dips, but quickly recovers as U.S. captures Venezuela's Maduro
The U.S. overnight launched a military strike against Venezuela, capturing President Nicolas Maduro and his wife and extracting them from the country.
What to know:
- The U.S. captured Venezuelan President Nicolas Maduro and his wife after a brief military operation Saturday morning, according to President Trump.
- Crypto prices suffered a brief, modest drop on the first reports of the military action, but have since recovered.
Top Stories
