 
 
JPMorgan believes the recent correction in crypto markets may be approaching exhaustion, with new data pointing to early stabilization after months of heavy de-risking.
In a Wednesday report, the bank said flow and positioning indicators suggest the selloff that weighed on crypto into year-end may be approaching a bottom rather than setting up another sharp leg lower.
Market experts led by Nikolaos Panigirtzoglou highlighted improving signals across exchange-traded funds and derivatives markets.
According to the team, “Signs of a bottoming out in January are also seen in other crypto indicators in perpetual futures and in our position proxies on CME futures.” They noted that things are more neutral after aggressive reductions in late 2025.
Bitcoin and Ether ETFs recorded notable outflows in December, even as global equity ETFs attracted a record $235 billion in inflows. That divergence underscored how sharply investors reduced crypto exposure.
 
Since then, bitcoin has fallen by double digits from its recent peak, while major altcoins have posted steeper declines amid a broader cooling in risk appetite.
The correction coincided with more volatility and ETF outflows, leaving crypto prices largely range-bound after last year’s rally. However, JPMorgan said ETF data so far in January suggest that selling pressure is easing, as flows into bitcoin and ether funds are stabilizing.
Similar signs of bottoming are emerging in perpetual futures markets and in positioning proxies derived from Chicago Mercantile Exchange futures, indicating that the bulk of the position unwind may already be complete.
JPMorgan added that conditions could improve further after MSCI decided not to exclude Bitcoin and crypto treasury companies from its global equity benchmarks. This move offers near-term relief for Strategy-linked exposure.
The bank also pushed back on claims that deteriorating liquidity drove the downturn, saying market breadth metrics tied to CME bitcoin futures and major ETFs show little evidence of worsening liquidity.