Headline: JPMorgan Analysts See Signs of Recovery Amidst Easing Crypto Selloff Translation: JPMorgan Analysts See Signs of Recovery Amidst Easing Crypto Selloff

The cryptocurrency market is increasingly showing signs that the sell-off might be coming to an end. Notably, there has been a stabilization in outflows from ETFs, according to analysts at JPMorgan, as reported by CoinDesk.

“Indicators of reaching a bottom this January are also apparent in other crypto metrics related to perpetual futures and positions at the Chicago Mercantile Exchange,” the experts noted.

Researchers highlighted a divergence in the performance of equity funds and crypto ETFs in December 2025. The former attracted $235 billion, while the latter saw outflows exceeding $1 billion.

However, data for January indicates a decrease in selling pressure and a stabilization of inflows into Bitcoin and Ethereum exchange-traded products.

JPMorgan analysts believe the preliminary recovery is supported by MSCI’s decision not to exclude Bitcoin and digital asset treasury companies from its global equity indices during the review in February 2026.

The bank also pointed out misconceptions regarding liquidity contraction in the cryptocurrency market. The report revealed that liquidity levels remained normal even during the correction, and the negative trends were primarily driven by investors’ panic.

Experts concluded that much of the cryptocurrency sell-off is “already behind us.” Current factors suggest a possible bottom has been reached rather than the beginning of a new downward phase.

As a reminder, co-founder of the trading platform Material Indicators, Kit Alan, stated that it is unlikely for the leading cryptocurrency to surpass its all-time high within 2026.