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A JPMorgan analyst is convinced that the worst is behind us as far as the ongoing decline in the price of a Bitcoin<\/a> is concerned.<\/p>\n Nikolaos Panigirtzoglou attributes recent weakness in the world\u2019s largest cryptocurrency to a bunch of long positions that were liquidated as positive news, including the pending approval of a Spot Bitcoin ETF<\/a> continued to fade but added:<\/p>\n This unwinding of long positions appears to be at its end phase rather than its beginning. As a result, we see limited downside for crypto markets over the near term.<\/p>\n<\/blockquote>\n Note that Bitcoin is not the only risk-on asset that has had a tough few weeks. China-related concerns and higher real yields in the U.S. have been hitting the tech space<\/a> at large.<\/p>\n Nasdaq Composite is now down about 7.0% versus its recent high.<\/p>\n Panigirtzoglou agrees that there has been positive news in the crypto market including PayPal Holdings introducing its own dollar-pegged stablecoin (read more<\/a>) and the launch of \u201cBase\u201d by Coinbase Global Inc<\/a>.<\/p>\n But investors are staying on the sidelines and waiting for regulatory clarity partly because the Securities & Exchange Commission has appealed<\/a> the recent decision in Ripple\u2019s favour, as per his research note today.<\/p>\n Appeal could result in a trial with outcome not expected until next year, inducing a new round of legal uncertainty for crypto and making them sensitive to any mid-process news.<\/p>\n<\/blockquote>\n On Friday, Fed Chair Powell also said at the Jackson Hole<\/a> symposium that rates may go even higher from here and signalled no near-term intent of cutting rates which doesn\u2019t bode well for the cryptocurrencies either.<\/p>\nBitcoin is not the only one taking a hit<\/h2>\n
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Why are investors staying on the sidelines?<\/h2>\n
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