In line with a recent ‘interview‘ with Bloomberg, JPMorgan Chase – An analysts from Global Investment Bank believe that the ongoing crypto bear industry is driving away institutional investors.
Analysts from JPMorgan, along with global market strategist Nikolaos Panigirtzoglou, have reportedly stated that involvement of institutional investors in Bitcoin [BTC] “appears to be weakening.”
In a collectively free analysis note, analysts have complete that “key flow metrics have downshifted dramatically,” as well as a decline within the Bitcoin forward market.
The experts reportedly noted the decreasing index of OI ‘open interest’ – the number of open contracts on Bitcoin futures — on the CBOE [Chicago Board options Exchange] and world-wide markets.
They supposedly claim that within the past month the index reached its “lowest levels” since the launch of Bitcoin futures commercing on10th Dec., last year.
Citing information from the United States CFTC [Commodity Futures Trading Commission], the report says that the “more extended used” contracts by the Chicago Mercantile Exchange [CME] are “near the lowest of 2018’s range.” therewith, the CME reported in the mid of October that Bitcoin [BTC] futures had continued to grow within the Q3 of this year.
Moreover, JPMorgan reportedly added that the common transaction size within the crypto market has fell to less than $160 USD, concerning to around $5,000 USD one year earlier. in addition, analysts mentioned that altcoins will continue to “suffer disproportionately throughout this correction part.”
The analysis note additionally touched on difficulties of the crash of ‘crypto mining gain’ that’s related to the general ‘decline‘ of crypto markets. Citing the dropping Bitcoin [BTC] hashrate- the measure of mining process computational difficulty — JPMorgan states that mining is not any longer economical for several miners, that are laterly forced to sell their equipments.
JPMorgan’s reported stance on the downward trend in crypto markets echoes that of CoinShares CSO Meltem Demirors, who claimed that the recent crash is caused by establishments “taking cash off the table.”
Even yesterday, crypto analysis firm Diar revealed an analysis report claiming that institutional investors have turned to higher liquidity OTC [over-the-counter] physical Bitcoin trading.