JPMorgan: The crypto winter will not come, and there has been no structural deterioration in crypto demand

JPMorgan's latest research report indicates that the recent Bitcoin pullback and the intensification of market panic do not signify the onset of a new crypto winter, but rather a "meaningful adjustment." Several short-term driving factors are behind the recent sell-off:

• ETF fund outflows related to basis trading liquidation
• Liquidation shocks from overly leveraged long positions
• Seasonal liquidity shortages as the year-end approaches
• Weak macroeconomic conditions ahead of the Federal Reserve's interest rate decision today

The bank emphasizes that these phenomena do not indicate a structural deterioration in crypto demand.

Institutional interest, real-world application advancements, and the trend towards tokenization remain robust. JPMorgan believes that the market is still in a healthy adjustment phase, rather than falling back into a bear market cycle.