Too Early to Characterize Bitcoin as Oversold, JPMorgan’s Note Says

JPMorgan, one of the leading investment banks around the world, has recently published a research note on Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and mentioned that it is too early to characterize BTC as oversold after the latest correction in the world’s largest digital currency.

According to a report published by Business Insider, JPMorgan’s research note highlighted a reversal of the pro-bitcoin sentiment after institutional investors returned to gold amid a surge in crypto market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

Despite its positive long-term overview, JPMorgan highlighted a spike in liquidations across the Bitcoin futures market. Yesterday, BTC saw its worst drop since March 2020. The overall market cap of digital currencies dropped by nearly $500 billion within a single day.

“The bitcoin flow picture continues to deteriorate and is pointing to continued retrenchment by institutional investors. Over the past month, bitcoin futures markets experienced their steepest and more sustained liquidation since the bitcoin ascent started last October. It is perhaps too early to characterize bitcoin as oversold. BTC-related investment products have seen a major drop in value,” JPMorgan’s research note mentioned.

Despite the latest correction, the world’s most valuable digital asset is still up by more than 40% since the start of 2021.

Bitcoin Liquidations

The BTC crash liquidated billions of dollars in long Bitcoin positions yesterday. According to the latest data published by crypto research platform Bloqport, more than 700,000 traders got liquidated yesterday. “What is striking is that the recent outflows from BTC funds have been accompanied by inflows into gold ETFs in a reversal of the last quarter of 2020 and the beginning of this year,” the bank added.

However, BTC optimism has not vanished completely due to the latest sell-off. Bill Miller, a leading American investor and fund manager said that the cryptocurrency market has seen such corrections before. “If I liked something at higher prices, it’s a safe bet I’ll like it even more at lower prices. This Bitcoin correction is right in line with moves we have seen many times in BTC,” Miller told CNBC.