JPMorgan finds confirmation that Bitcoin has entered a bear market

The backwardation in Bitcoin futures signals the persistence of negative price momentum for the flagship cryptocurrency going forward. Analysts at JPMorgan concluded this, Bloomberg reports.

In their note, the experts drew attention to a situation where spot Bitcoin prices exceed futures prices. This occurred as a result May correction. They say this reflects ‘weak demand from institutional players trading on CME.’

Experts recalled that backwardation was observed for much of 2018. After reaching the then-record high of $20,000, the leading cryptocurrency fell 74%.

Experts noted that the downward indicator was also evident as Bitcoin’s dominance index fell to a three-year low of 40%. At the start of the year, it stood at 70%. According to experts, a recovery to 50% would signal the end of the bear market.

Earlier, ForkLog experts stated that there were no grounds to regard the May correction as a sustained bear trend.

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