Futures Flash Warning for Bitcoin Outlook in JPMorgan Analysis
- Date: 10-Jun-2021
- Source: Yahoo News
- Sector:Financial Markets
- Country:Middle East
Futures Flash Warning for Bitcoin Outlook in JPMorgan Analysis
(Bloomberg) -- Bitcoin's strongest two-day rally in about a fortnight has yet to dispel doubts about the virtual currency's vulnerability following May's rout.
The cryptocurrency has jumped 9% over two days and was trading at $36,740 as of 7:05 a.m. in London on Thursday. While the momentum may cheer bulls, a JPMorgan Chase & Co. team said backwardation in the futures market -- where the spot price is above futures prices -- is a reason for caution.
“We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market,” JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note. They added that Bitcoin's relatively depressed share of total crypto market value is another concerning trend.
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