Bitcoin’s downtrend ‘appears to be approaching its conclusion phase,’ according to a JPMorgan analyst

The bitcoin bear market, according to Nikolaos Panigirtzoglou, has passed. He also acknowledged that the cryptocurrency sector has seen some encouraging developments lately.

According to a JPMorgan analyst, the precipitous drop in Bitcoin’s value has already bottomed out. A number of long positions were liquidated as favorable news, such as the imminent approval of a Spot Bitcoin ETF, continued to fade, according to Nikolaos Panigirtzoglou, who also notes that:

“It looks like the process of unwinding long holdings is nearing completion. That’s why we think the cryptocurrency market is rather safe for the time being.”

It’s important to remember that Bitcoin is not the only risky asset that has struggled in recent weeks. The IT industry as a whole has been feeling the effects of rising real yields in the United States and worries about China.

Since its recent peak, the Nasdaq Composite has lost nearly 7%. Panigirtzoglou acknowledges that there has been encouraging news in the cryptocurrency sector, such as the launch of “Base” by Coinbase Global Inc. and the introduction of PayPal Holdings’ own dollar-pegged stablecoin.

According to his research note published today, investors are waiting for regulatory certainty as the SEC appeals the recent ruling in Ripple’s favor.

Cryptocurrencies are especially vulnerable to developments in the middle of the process since an appeal might lead to a trial with a verdict not anticipated until next year.

Not good news for the cryptocurrency market is Fed Chair Powell’s statement at the Jackson Hole symposium on Friday that rates might rise further and that the central bank has no plans to decrease rates soon.

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