The declines in the world financial markets on the night connecting Sunday to Monday had a harsh impact on the cryptocurrency world. While Bitcoin fell to $49 thousand on Monday morning, it later rose to around $55 thousand. JPMorgan analysts commented on the rise that took place in these minutes.

“The impact of institutional investors…”

Analysts led by Nikolaos Panigirtzoglou wrote in their latest report that institutional investors’ confidence in the largest cryptocurrency is behind the comeback in Bitcoin:
“This comeback came with institutional investors who took almost no steps towards not taking risks. Transactions in Bitcoin futures positions reflected positively on prices. The fact that Bitcoin’s premium price in futures is higher than the spot price clearly shows the confidence of futures investors.”

What are the reasons?

According to analysts, there are several reasons behind the confidence of this group of institutional investors in Bitcoin. JPMorgan analysts; Genesis and Mt. Gox sales are largely over, Morgan Stanley bank’s permission for asset managers to recommend Bitcoin spot ETFs, and the fact that FTX will make payments in cash in the coming period are the underlying reasons for this confidence.

Experts also wrote that they think that not only Republicans in the US elections, but also Democrats in the future will have positive moves in the crypto area.
The report also stated that the declines are not based on cryptocurrencies, but on the contrary, they are related to the traditional financial world.