JPMorgan analysts are signaling that the recent selloff in the cryptocurrency market may be nearing its conclusion, as evidenced by stabilizing outflows from exchange-traded funds (ETFs). This insight follows their observations of various indicators, including perpetual futures and positions on the Chicago Mercantile Exchange, which suggest that a market bottom could have been reached in January.
In December 2025, a notable contrast was seen between equity funds, which attracted $235 billion, and crypto ETFs, which experienced a loss exceeding $1 billion. However, data from January indicates a reduction in selling pressure alongside a recovery in inflows into Bitcoin and Ethereum ETFs.
Support for this preliminary recovery comes from MSCI's recent decision to retain both Bitcoin and digital asset companies in its global equity indices during its February 2026 review. Additionally, JPMorgan addressed misconceptions surrounding liquidity in the crypto market, asserting that metrics remained stable throughout the correction period, with investor panic driving negative dynamics.
