Cryptocurrency ETF Inflows Stabilizing
JPMorgan analysts recently released a report indicating that after significant outflows in December, cryptocurrency ETF inflows have stabilized in January. This trend suggests improving market sentiment and potentially reduced selling pressure.
Market Correction Driven by Risk-Aversion
Analysts noted that the recent market correction was primarily driven by investor risk-aversion following MSCI's October announcement about potential index exclusions—not by worsening liquidity conditions. Many investors opted to reduce exposure to avoid potential regulatory risks.
MSCI Decision Supports Market Stability
Notably, MSCI has decided not to remove Bitcoin and crypto-related firms from its global equity benchmarks in the upcoming 2026 review. This decision could help restore investor confidence and support a more stable trajectory for the crypto market.