Eric Lam and Joanna OssingerJune 9, 2021, 11:09 PM·2 min read1 / 2Futures 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.
Traders are waiting for the next catalyst to break Bitcoin from a $30,000 to $40,000 range that’s been in place...read more...