According to a report by CoinDesk, JPMorgan's latest report suggests that the recent sell-off in the cryptocurrency market may be nearing its end. Analysts found that outflows from Bitcoin and Ethereum ETFs began stabilizing in January, and positioning indicators in the futures market suggest that investor unwinding by the end of 2025 has largely been completed. The bank believes market liquidity remains strong, and this round of correction was primarily driven by de-risking following MSCI's October 2023 announcement about potentially excluding crypto-related companies, rather than market pressure. MSCI's recent decision not to exclude crypto-related companies from its global equity index review in February 2026 has provided short-term relief to the market, reducing the risk of forced selling linked to index changes.
JPMorgan: Crypto Market Sell-Off Near Bottom as ETF Outflows Stabilize
TechFlowShare
Summary
JPMorgan says market trends suggest the crypto sell-off is near a bottom. ETF outflows for Bitcoin and Ethereum have stabilized since January, with futures positioning showing unwinding is mostly done by year-end 2025. The drop was driven by MSCI’s October 2024 comment on crypto firms, not broader market pressure. MSCI’s February 2026 decision to keep crypto-related companies in its index eased short-term selling risks. Market cycles appear to be shifting as forced selling fades.
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