As per the Bloomberg report on Tuesday, several analysts from global investment bank JPMorgan Chase reckon that the protracted cryptocurrency bear market is driving away institutional investors.
Global market strategist Nikolaos Panigirtzoglou, and analysts from JPMorgan, have allegedly stated that participation of institutional investors in Bitcoin is vanishing.
Analysts have concluded, at a jointly released research note, that this key flow metrics have downshifted significantly, including a decline in the Bitcoin futures market.
The experts purportedly noted the declining index of open interest around the Chicago Board Options Exchange global markets. They allegedly assert that previously month the index reached its lowest levels ever since the launch of Bitcoin futures trading on Dec. 10, 2019.
The report mentions that your “more widely used” contracts by CME are “near the bottom of 2019 ‘s range,” citing data out of your United States Commodity Futures Trading Commission. Its to be noted that CME reported in mid-October that BTC futures had carried on growing in the third quarter at the moment.
In addition, JPMorgan purportedly stated how the average transaction size within the cryptocurrency market has descended to diminish than $160, opposed to about $5,000 year ago. Furthermore, analysts mentioned that many the altcoins are suffering disproportionately throughout this correction period.
The research note also discussed the issue from the crash of cryptocurrency mining profitability that may be associated with the overall downfall of cryptocurrency markets. JPMorgan states that mining should cease being economical for several miners, citing the dropping Bitcoin hashrate – the measure of mining’s computational difficulty. These small miners are subsequently instructed to sell off their equipment.
Moreover, the reported stance of JPMorgan, over the downward trend in cryptocurrency markets echoes that from CoinShares CSO Meltem Demirors. Notably, Demirors claimed that your recent crash is caused by institutions taking money from the market.
Diar, a renowned cryptocurrency research firm, yesterday, published an analysis claiming that institutional investors have took on higher liquidity OTC physical Bitcoin trading.