In a joint research note, analysts concluded that “key flow metrics have dramatically decreased,” including a deterioration in the Bitcoin futures market. The specialists supposedly noted the declining open interest (OI) index–the number of open contracts for Bitcoin futures–on the international markets of the Chicago Board of Options Exchange (CBOE). They allegedly claim that the index came to its “lowest levels” in the last month since the Bitcoin futures trade was introduced on 10 December 2017.
Citing data from the United States Commodity Futures Trading Commission (CFTC), the document states that the Chicago Mercantile Exchange (CME) “more widely used” contracts are “close to the bottom of the 2018 range.” Thus, the CME detailed in mid-October that BTC futures contracts proceeded to swell in the third quarter of this year.
In addition, JPMorgan supposedly stated that the average size of trades in the crypto market declined to less than $160, compared to about $5,000 a year ago. Analysts also demonstrated that altcoins “suffer disproportionately during this correction stage.”
The research document also addressed the subject of crypto-mining profitability, which is connected to the overall deterioration in crypto markets. Citing the declining Bitcoin hashrate—the gauge of the computational complexity of mining— JPMorgan states that mining is no longer profitable for many miners who are subsequently constrained to sell their equipment.
The stance of JPMorgan on the downward trend in crypto markets echoes that of CoinShares CSO Meltem Demirors, who claimed that the recent collapse was caused by large funds “taking money off the table.”
Yesterday, cryptographic research firm Diar distributed an analysis claiming that institutional investors have opted for higher over-the-counter (OTC) liquidity for physical Bitcoin trade.