JPMorgan says the crypto sell-off is happening mainly because ETF outflows are slow and the postponement of the MSCI index is causing Bitcoin to stabilize around $94,000.
Summary
- JPMorgan says BTC and ETH ETF outflows have slowed, with futures positioning implying most forced sales should be completed by the end of 2025.
- The bank attributed the correction to MSCI-related risk reduction, rather than stress in market structure, noting that liquidity in cryptocurrencies remains strong.
- MSCI’s move to keep crypto-linked companies in indexes through February 2026 lowers the risk of forced selling and supports a potential market bottom.
JPMorgan Chase & Co. stated that the recent sharp sell-off in the cryptocurrency market may be largely over, according to a report from the investment bank.
Nikolaos Panigirtzoglou, an analyst at the bank, said outflows from Bitcoin and Ethereum exchange-traded funds have slowed significantly since January. Positioning indicators in the futures market suggested that sales to investors would be largely completed by the end of 2025, the analyst said.
JPMorgan warns of a downturn in the crypto market
The bank reported that market liquidity remains strong despite the recent recession.
JPMorgan stated that the main driver of the current correction stemmed from risk mitigation measures triggered by MSCI’s October announcement that crypto-related companies could be delisted from indices, and not from market-related stress.
MSCI’s recent decision not to exclude crypto-related companies from assessing the global stock index in February 2026 provided short-term relief, according to JPMorgan. The bank stated that this decision reduced the risk of possible forced sell-offs due to index changes and strengthened expectations of a bottom formation in the cryptocurrency market.
Bitcoin was trading at around $94,000 on Friday, according to market data.
