Analysts of the American Bank holding company JPMorgan Chase record outflows of institutional investors from cryptocurrency assets. According to them, the culprit was a prolonged bearish trend, reports the business publication Bloomberg.
“The participation of financial institutions to trade bitcoin, apparently, is declining,” — said in a research note dated 14 Dec.
Experts note that “key indicators of the flow has drastically reduced,” including in the futures markets and secondary volumes. So, analysts point to the time that the index of open items (OI) on the Cboe last month reached the lowest level since the start of open trading contracts a year ago. The same indicator CME “is near the bottom of its range in 2018”.
Experts JPMorgan Chase drew attention to the decline in the average size of a transaction for the cryptocurrency market with a $5000 year ago to $160. Analysts added that altcoins continue to “disproportionately suffer in this phase of correction”.
In addition, the Bank’s specialists mentioned the drop in profitability of mining bitcoins in the background of the market downturn. Reduction can see the network of bitcoin suggests that unprofitable miners shut off power or move to mining altcoins.