Bitcoin’s latest slide may finally be losing steam. Analysts at JPMorgan believe the worst of the recent crypto market correction could be behind us, pointing to easing exchange-traded fund (ETF) outflows and a key MSCI decision that has reduced pressure on crypto-linked stocks.
According to a recent report from JPMorgan Chase & Co., the steep sell-off that rattled digital assets in recent weeks appears close to running its course. The bank’s analyst Nikolaos Panigirtzoglou said outflows from both Bitcoin and Ethereum ETFs have slowed notably since January. Futures positioning data also suggests that the bulk of “forced selling” is likely to wrap up by late 2025, indicating that investor unwinding may already be passing its peak.
That message matters because ETFs have played a huge role in crypto flows over the past year. Heavy redemptions can amplify market declines. Seeing those outflows cool has been taken as an early signal that sentiment is stabilizing.
Importantly, JPMorgan isn’t pinning the blame for the downturn on structural cracks in the market. Instead, the bank points to a wave of de-risking tied to MSCI’s actions last October. At that time, the index provider warned that crypto-related companies might be removed from its indices, prompting institutional investors to cut exposure in advance. JPMorgan described this as risk-management behavior rather than panic selling driven by liquidity stress.
That narrative shifted again when MSCI recently confirmed it will not exclude crypto-linked firms in its upcoming global equity index review through February 2026. According to JPMorgan, this move delivered meaningful short-term relief, lowering the threat of forced index-driven sell-offs and helping the market search for a bottom.
Liquidity across the broader crypto ecosystem also remains healthy, the bank added — another reason it believes the correction looks more like a temporary reset than the start of a deeper breakdown.
Bitcoin has been hovering near the $94,000 level as of Friday, based on market data, after weeks of volatility that saw traders questioning whether the rally had finally stalled. With ETF outflows cooling and the MSCI cloud lifting for now, some investors are beginning to view current price action as consolidation rather than collapse.
Of course, none of this guarantees an immediate rebound. Macro conditions, regulation, and risk appetite can still shift quickly. But JPMorgan’s view suggests the most intense phase of selling pressure may already be behind crypto markets.
For investors watching from the sidelines, that combination — slowing ETF redemptions, solid liquidity, and index stability — may be the first hint that the market is trying to find its footing again.
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