JPMorgan Chase: Bitcoin's rebound is mainly due to the support of institutional investors

BlockBeats news, August 8, according to The Block, on Monday, the cryptocurrency market suffered the most dramatic correction since the FTX crisis, with Bitcoin prices falling by more than 15% at one point, and then rebounding. JPMorgan analysts said the rebound was mainly due to institutional investors, who had limited or no de-risking of Bitcoin futures despite the overall market turmoil.

JPMorgan analysts wrote in a report on Wednesday that JPMorgan's futures position indicators show that these investors are optimistic about the prospects. They said that the higher premium of Bitcoin futures prices over spot prices indicates that futures investors are confident.

Analysts believe that there are many reasons for institutional investors to remain optimistic. Last week, Morgan Stanley allowed its wealth advisors to recommend spot Bitcoin exchange-traded funds to some clients. In addition, analysts said that the large-scale liquidations of Mt.Gox and Genesis bankruptcy may have passed, and cash payments from FTX bankruptcy later this year may stimulate demand in the cryptocurrency market. In addition, they added that both major U.S. political parties have expressed support for favorable cryptocurrency regulation. However, analysts pointed out that these positive catalysts have largely been factored in by the market. Analysts also pointed out that this round of Bitcoin's sharp decline was not caused by cryptocurrency-specific problems, but by the pullback of traditional risk assets such as stocks.