JPMorgan: "Bitcoin futures prices hint at market decline" – Bits Media

Analysts at the investment bank JPMorgan have noted the difference between the prices of bitcoin in the derivatives market and in the futures market, which indicates a possible decline in the rate of the first cryptocurrency.

In a letter to investors, a team of JPMorgan analysts led by Nikolaos Panigirtzoglu (Nikolaos Panigirtzoglou) warned, that the Bitcoin market returned to reverse dynamics. This is the situation, when prices in the urgent market are higher, than the prices of futures for assets. It happened for the first time with 2018 of the year, when during the year the course of the first cryptocurrency decreased 74%, And this is enough "bear" signal for traders.

“We believe, that a return to reverse position is a negative signal, indicating the bear market. In our opinion, The situation is very reminiscent of the situation in 2018 year ", - Note Analysts JPMorgan.

Researchers analyzed the 21-day sliding medium futures and urgent markets of bitcoin. They discovered an “unusual development of events, reflecting the weak demand for bitcoin from institutional investors ", trading in BTC futures on the Chicago Modern Exchange (CME).

Another "bear" signal is a decrease in the dominance of bitcoin in the cryptocurrency market. If in January the indicator exceeded 70%, then by the end of May the dominance decreased to 40%. At the current moment, the dominance of bitcoin is 44.12%. BTC is traded in the area $37 300, and the capitalization of the first cryptocurrency is $698 billion.

Previously, the JPMorgan analyst predicted, that in the short term, the course of the first cryptocurrency may decrease to $24 000, but then Bitcoin will begin the next growth cycle, during which it can well achieve $145 000.