JPMorgan says crypto sell-off is mostly done as ETF outflows slow and MSCI’s index reprieve helps Bitcoin stabilize near $94k.
Summary
- JPMorgan says BTC and ETH ETF outflows have eased, with futures positioning implying most forced selling should finish by late 2025.
- The bank blames the correction on MSCI-related de-risking, not market structure stress, and notes liquidity across crypto remains strong.
- MSCI’s move to keep crypto-linked firms in indexes through February 2026 lowers forced-selling risk and supports a potential market bottom.
JPMorgan Chase & Co. stated 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 had slowed significantly since January. Positioning indicators in the futures market suggested investor selling would largely conclude by the end of 2025, according to the analyst.
JPMorgan warns about crypto market downturn
The bank reported market liquidity remains strong despite the recent downturn.
JPMorgan stated the primary cause of the current correction stemmed from risk mitigation measures triggered by MSCI’s October announcement that crypto-related companies could be delisted from indices, rather than market-related stress.
MSCI’s recent decision not to exclude crypto-related companies from its global equity index review in February 2026 provided short-term relief for the market, according to JPMorgan. The bank stated this decision reduced the risk of potential forced sell-offs due to index changes and strengthened expectations of a bottom formation in the cryptocurrency market.
Bitcoin traded at approximately $94,000 as of Friday, according to market data.
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