Why Is Bitcoin Price Rising? JPMorgan Analysts Explain in Their Latest Report!

  • Optimism regarding the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) continues to grow, as outlined in a research report released by JPMorgan on Wednesday.
  • The report suggests that this optimism is reflected in the world’s largest cryptocurrency reaching its highest level of the year in recent times.
  • In the recent rally, institutional participation is also evident in the analysis of Bitcoin flows. There has been a significant inflow of BTC into large wallets, indicating demand from institutional investors.

JPMorgan analysts, examining the significant increase in Bitcoin’s price, draw attention to the growing institutional demand and CME Bitcoin futures.

JPMorgan’s New Report on Bitcoin’s Rise

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Optimism regarding the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) continues to grow, as outlined in a research report released by JPMorgan on Wednesday.

The report indicates that this optimism has been reflected in the world’s largest cryptocurrency reaching its highest level of the year in recent times. The report, led by analysts, states, “This recent flow momentum appears to be institutional participation.” The bank’s analysis of the crypto futures market supports this claim. Referring to the Chicago Mercantile Exchange (CME), analysts wrote:

“In particular, the futures open interest proxy based on CME Bitcoin futures, which is more heavily used by institutional investors, has not only reached its highest level of the year in the past week, but has also reached levels last seen in August 2022, before the FTX crash.”

JPMorgan suggests that the corresponding open interest proxy for CME Ether (ETH) futures has been less pronounced.

Rising Institutional Demand

In the analysis of Bitcoin flows, the recent institutional participation is evident. There has been a significant inflow of BTC into large wallets, indicating demand from institutional investors.

According to the report, this is in contrast to previous quarters when “Bitcoin momentum was driven more by small wallets and, therefore, dominated by retail investors.

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