The cryptocurrency market has seen immense selling pressure since 12 May 2021. The overall market cap of digital currencies has lost nearly 50% of its value in the last six weeks. However, the latest research note from JPMorgan, one of the world’s largest investment banks, highlights the signs of healing in the cryptocurrency market.
According to a recent report published by Bloomberg citing the research note by JPMorgan strategists including Josh Younger and Veronica Mejia Bustamante, the latest stability in the Bitcoin futures market is a positive sign for the cryptocurrency market. However, the overall crypto market is not healthy as of now.
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“The near-term setup is challenging. There is likely still an overhang of underwater positions which need to be cleared through the market. So, while the cryptocurrency market shows signs that it is not yet healthy, it does also appear to be beginning the process of healing,” the research note states.
Earlier this month, Nikolaos Panigirtzoglou, Managing Director, Global Market Strategy at JPMorgan, said that the institutional demand for Bitcoin is weak. During an interview with Business Insider, Panigirtzoglou mentioned that a break below $30,000 is necessary for the world’s largest cryptocurrency to attract institutional investors.
Since May 2021, the leading cryptocurrency accounts have accelerated their transfers amid market volatility. Last week, a well-known Ethereum whale account moved 81,760 ETH from a digital wallet to cryptocurrency exchange Binance. Similarly, XRP whales have also started moving the world’s 7th largest cryptocurrency from leading digital exchanges. XRP wallet transferred 26 million coins from digital exchange Binance to a crypto wallet on Thursday 24 June at 17:00 UTC. Furthermore, the Bitcoin network saw a surge in whale transactions over the last few days. According to Whale Alert, a blockchain tracking and analytics firm, a leading Bitcoin wallet recently moved 2,395 Bitcoin from Coinbase to a digital wallet. The total value of the mentioned transaction stands at around $79 million.