von • JPMorgan analyst Nikolaos Panigirtzoglou believes that the ongoing weakness in Bitcoin is coming to an end.
• The recent decline in price of Bitcoin has been attributed to a liquidation of long positions related to lack of positive news such as the approval of Spot Bitcoin ETF.
• Investors are staying on the sidelines waiting for regulatory clarity, partly due to SEC appealing Ripple’s decision and Fed Chair Powell signalling no near-term intent of cutting rates.
Overview
JPMorgan analyst Nikolaos Panigirtzoglou believes that the ongoing decline in the price of a Bitcoin is coming to an end and there is limited downside over the near term. This weakening has been attributed to a liquidation of long positions related to lack of positive news such as the approval of Spot Bitcoin ETF. Investors are staying on the sidelines waiting for regulatory clarity, partly due to SEC appealing Ripple’s decision and Fed Chair Powell signalling no near-term intent of cutting rates.
Recent Weakness in Price
The price of a Bitcoin has declined nearly 17% in less than two months due to unwinding of long positions related to fading news like pending approval for a Spot Bitcoin ETF. Additionally, China-related concerns and higher real yields in US have also contributed towards this decline by affecting tech space at large leading Nasdaq Composite down by 7%.
Why Investors are Staying Away?
Despite recent positive news such as PayPal Holdings introducing its own dollar-pegged stablecoin and launch Coinbase Global Inc’s „Base“, investors are still not ready to jump back into crypto market yet due mainly due uncertainty over regulations with SEC recently appealing Ripple’s favourable decision which could result in trial with outcome not expected until next year. Furthermore, Fed Chair Powell also said that rates may go even higher from here which is further hindering investor sentiment regarding cryptocurrencies.
Positive Outlook
Nevertheless, JPMorgan analyst Nikolaos Panigirtzoglou believes that worst is behind us as far as declining price trend is concerned and there is limited downside for crypto markets over near term since unwinding phase appears close to its end now . He added that this weakening was not only specific towards bitcoin but tech space at large was affected too with Nasdaq Composite being down by 7%.
Conclusion
In conclusion, despite current volatility investors can take comfort from fact that unwinding phase appears close its end now according best analysis available from JPMorgan’s Nikolas Panigirtzoglou who believes that worst is behind us as far as declining prices are concerned with limited downside over near term anticipated henceforth. However, this outlook does depend upon resolution around appeal process initiated by SEC against Ripple’s favourable ruling which could lead into trial taking place next year before any final verdict arrives.
