Monday saw the cryptocurrency markets experience their most significant drop since the FTX crisis, with Bitcoin plunging more than 15% before recovering.
According to analysts from JPMorgan, this rebound was mainly driven by institutional investors who did not show any major de-risking in Bitcoin futures despite the overall volatility in the market.
In a report on Wednesday, JPMorgan’s managing director Nikolaos Panigirtzoglou and his team stated that their futures position indicator, which monitors the cumulative open interest in CME Bitcoin futures contracts, as well as the upward slope of the futures curve, indicate a positive sentiment among these investors.
They explained that a higher futures price premium compared to spot prices indicates a certain level of confidence from futures investors.
