JPMorgan points to weak Bitcoin futures as signal for bear market
June 10, 2021. Summarized by summa-bot.
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JPMorgan analysts flagged Bitcoin futures backwardation and weakened dominance as major bearish signs for the market.
JPMorgan’s cryptocurrency market analysts have pointed to the difference between Bitcoin’s (BTC) spot prices and BTC futures prices as a potential bearish sign for the market.
In a Thursday note to clients, JPMorgan analysts led by global market strategist Nikolaos Panigirtzoglou wrote that the Bitcoin market has returned to backwardation — a situation when the spot price is above futures prices.
The analysts said that the past month's correction in crypto markets saw Bitcoin futures reversing into backwardation for the first time since 2018.
According to the strategists, Bitcoin futures backwardation should be viewed as a negative sign for BTC price despite a major rebound on the market over the past two days, with Bitcoin hitting $37,500 on Thursday.