“Bitcoin futures markets experienced a steep liquidation in the last few days,” JPMorgan strategist Nikolaos Panigirtzoglou mentioned in a research note on Tuesday. The bank added that momentum signals for Bitcoin will naturally decay from the current levels.
According to a report published by Bloomberg, JPMorgan has raised concerns about the recent dip in Bitcoin and warned investors about a surge in BTC futures markets liquidation. The world’s largest digital currency stayed above $54,000, which is up approximately 1% in the last 24 hours.
The latest comments from the bank came as a surprise after JPMorgan gave a long-term price target of $130,000 per Bitcoin in an earlier note and mentioned that Bitcoin’s declining Volatility is attracting institutional investors.
In Tuesday’s note, the investment bank highlighted a sharp decrease in institutional flows into Bitcoin-related investment products. “Over the past few days, Bitcoin futures markets experienced a steep liquidation in a similar fashion to the middle of last February, middle of last January, or the end of last November. Momentum signals will naturally decay from here for several months, given their still-elevated level. Whether we see a repeat of those previous episodes in the current conjuncture remains to be seen but flows into BTC funds appear weak,” note states.
$1 Trillion Bitcoin Support
BTC’s $1 trillion market cap acted as strong support for the world’s largest digital currency in the last few weeks. Bitcoin’s on-chain activity has increased significantly above the $1 trillion market cap.
“This revisit of lower price has created incredibly strong price validation for Bitcoin about $1 trillion cap. 14% of the supply last moved above the $1 trillion market cap. This is a key line in BTC's price discovery, an area of immense support,” BTC analyst, Willy Woo mentioned on Twitter.
Currently, Bitcoin has a market cap of $1.03 trillion. Despite the recent dip, the cryptocurrency is up by nearly 90% in the last 15 weeks. The overall market dominance of BTC now stands at around 50%.
