JPMorgan sees signs of stabilization after late-2025 crypto selloff
JPMorgan says there are growing indications that the recent crypto market selloff may be approaching a bottom, as flow and positioning data point to stabilization in early January.
Analysts led by Nikolaos Panigirtzoglou noted that indicators across perpetual futures and CME-based positioning proxies suggest the bulk of de-risking has already occurred, reports CoinDesk.
Bitcoin and Ether both declined sharply after strong earlier gains, with BTC down double digits from its peak and major altcoins suffering deeper pullbacks. The correction coincided with heightened volatility, ETF outflows and a broader cooling in global risk appetite. Despite these pressures, JPMorgan argues the current price action reflects consolidation rather than renewed downside momentum. The bank characterizes the recent phase as one of digestion following an aggressive position unwind late in 2025.
ETF flows and futures positioning point to easing pressure
JPMorgan highlighted that Bitcoin and Ether ETFs saw heavy outflows in December, even as global equity ETFs attracted a record $235 billion in inflows, underscoring how sharply investors cut crypto exposure into year-end. However, early January data show that selling pressure has begun to ease, with ETF flows into BTC and ETH starting to stabilize. Similar signals are emerging in perpetual futures markets, where leverage and positioning appear to be normalizing.
CME futures data suggest both institutional and sophisticated retail investors have largely completed the position reductions that dominated the final quarter of last year. This shift implies fewer forced sellers remain in the market. As a result, price action has become more range-bound, a pattern JPMorgan associates with early bottoming phases rather than trend continuation.
Index decisions reduce forced-selling risk
The report also pointed to MSCI’s decision not to exclude Bitcoin and crypto treasury companies from its global equity benchmarks in the February 2026 review as a supportive factor. According to JPMorgan, the decision provides near-term relief by reducing the risk of index-related forced selling, particularly for Strategy-linked exposure. While MSCI has flagged a broader methodology review in the future, the immediate outcome removes a key overhang that weighed on sentiment in late 2025.
JPMorgan pushed back on the idea that deteriorating liquidity drove the correction, noting that its market breadth metrics show little evidence of worsening trading conditions. Instead, the bank said de-risking linked to MSCI’s October signals around potential exclusions was the primary catalyst. Taken together, the analysts concluded that January data point toward a potential bottoming process rather than the start of another leg lower.
Recently we wrote that Binance has launched new perpetual futures contracts tied to gold and silver, marking a notable expansion of its derivatives lineup beyond purely digital assets.
Latest JPMorgan Chase News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
