JPMorgan's latest analysis indicates that the cryptocurrency market's recent sell-off may be approaching its conclusion. The report highlights that outflows from Bitcoin and Ethereum ETFs have stabilized in January, suggesting that investor unwinding is largely complete. The bank notes that market liquidity remains robust, attributing the correction to de-risking after MSCI's October 2023 announcement about potentially excluding crypto-related companies.
The situation improved as MSCI decided not to exclude these companies from its global equity index review in February 2026, providing short-term relief and reducing the risk of forced selling. This development has helped stabilize the market, with positioning indicators in the futures market supporting the view that the sell-off is nearing its end.
JPMorgan: Crypto Market Sell-Off Nears End as ETF Outflows Stabilize
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