In line with a recent ‘interview‘ with Bloomberg, JPMorgan Chase – An analysts fromGlobalInvestment Bank believe that theongoingcryptobear industryis driving away institutional investors.
Analysts from JPMorgan, along withglobal marketstrategistNikolaos Panigirtzoglou, have reportedly statedthat involvement of institutional investors in Bitcoin [BTC] “appears to beweakening.”
In acollectivelyfreeanalysisnote, analysts havecompletethat “key flow metrics have downshifted dramatically,”as well asa declinewithin theBitcoinforward market.
Theexpertsreportedly noted the decreasing index of OI ‘open interest’ – the numberof open contracts on Bitcoin futures — on the CBOE [Chicago BoardoptionsExchange] and world-widemarkets.
Theysupposedlyclaim thatwithin thepast month the index reached its “lowest levels” since the launch of Bitcoin futurescommercingon10th Dec., last year.
Citinginformationfrom theUnited States CFTC[CommodityFuturesTradingCommission], the report says that the “moreextendedused” contracts by the Chicago Mercantile Exchange [CME]are“nearthe lowestof 2018’srange.”therewith, the CME reported inthe mid of Octoberthat Bitcoin [BTC] futures hadcontinuedto growwithin theQ3 of this year.
Moreover, JPMorgan reportedly addedthatthe commontransactionsizewithin thecrypto market hasfelltoless than $160 USD,concerningto around $5,000 USD one yearearlier.in addition, analysts mentioned that altcoinswillcontinueto “suffer disproportionatelythroughoutthis correctionpart.”
Theanalysisnoteadditionallytouched on difficultiesof the crash of ‘crypto mininggain’that’srelated tothe general ‘decline‘ of crypto markets. Citing the dropping Bitcoin [BTC] hashrate- themeasureof mining processcomputational difficulty— JPMorgan states that miningis not anylonger economicalfor severalminers,thatarelaterlyforced toselltheirequipments.
JPMorgan’sreportedstance on the downward trend in crypto markets echoes that of CoinShares CSO Meltem Demirors,whoclaimed that the recent crash is caused byestablishments“takingcashoff the table.”
Even yesterday, cryptoanalysisfirm Diarrevealedananalysis report claiming that institutional investors have turned to higher liquidity OTC [over-the-counter] physical Bitcointrading.