Is the crypto sell-off bottoming out? JPMorgan's analysis suggests yes

The massive liquidation that has shaken the cryptocurrency markets may be reaching its turning point, according to JPMorgan's research team led by Nikolaos Panigirtzoglou. The clearest evidence comes from the behavior of spot ETFs, whose outflows are showing signs of slowing down, a signal that could indicate investor panic is losing momentum.

**CME data reveals institutional caution**

A particularly revealing indicator comes from the Chicago Mercantile Exchange (CME), where leverage data on Bitcoin futures does not show a notable contraction. This is significant because it suggests that large institutional investors are not executing massive withdrawals of their positions, unlike what is observed in retail market segments.

This disconnect between retail and institutional behavior is interpreted by JPMorgan as a potentially constructive signal. While some smaller investors are liquidating positions out of fear or capital needs, the big players are maintaining their exposure, which has historically preceded market recoveries.

**The most likely short-term scenario**

If the trend of slowing ETF spot outflows continues in the coming weeks, JPMorgan estimates that the market could transition into a phase of stabilization and gradual recovery. However, analysts warn that this forecast critically depends on continuous monitoring of macroeconomic variables that could reverse the scenario at any moment.

The conclusion is clear: the crypto sell-off is not over, but technical indicators suggest we are closer to the bottom than to new all-time lows.