ETF OUTFLOWS SLOW, BITCOIN CORRECTION COULD BE LOSING STEAM: JPMORGAN
Bitcoin ETF outflows are slowing: JPMorgan Chase & Co. believes the recent sharp sell-off in the cryptocurrency market may be coming to an end, according to a new report.
Analyst Nikolaos Panigirtzoglou noted that outflows from Bitcoin and Ethereum exchange-traded funds (ETFs) have slowed significantly since January. Futures market indicators also suggest that most investor selling could wrap up by the end of 2025, signaling a potential stabilization for the crypto market.
JPMorgan Flags Crypto Market Downturn
JPMorgan Chase & Co. has highlighted ongoing risks in the cryptocurrency market, even as overall market liquidity remains strong following the recent downturn.
Correction Driven by Risk Mitigation, Not Market Stress
The bank noted that the current market correction was primarily driven by risk mitigation measures after MSCI’s October announcement that crypto-related companies could be delisted from certain indices. According to JPMorgan, this factor—rather than broader market stress—was the main trigger behind the recent sell-off.
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MSCI Decision Provides Short-Term Relief
MSCI later decided not to exclude crypto-related companies from its global equity index review in February 2026. JPMorgan said this move offered short-term relief by reducing the risk of forced sell-offs linked to index adjustments, while also supporting expectations that the cryptocurrency market may be forming a bottom.
Bitcoin Holds Around $94,000
As of Friday, Bitcoin traded near $94,000, according to market data, reflecting the market’s cautious but stabilizing trend.
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Conclusion
JPMorgan’s latest report suggests the cryptocurrency market may be stabilizing after the recent sharp correction. Slowing ETF outflows from Bitcoin and Ethereum, combined with supportive moves from MSCI regarding index inclusion, indicate that investor selling could largely conclude by the end of 2025. While risks remain, liquidity continues to be strong, and Bitcoin trading around $94,000 reflects a market cautiously recovering.
