Bitcoin ($BTC USD) Cryptocurrency Price Outlook: Futures a Warning to JPMorgan

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Bitcoin’s strongest two-day rally in about a fortnight has yet to dispel doubts about the vulnerability of the virtual currency after its defeat in May.

The cryptocurrency is up 9% in two days and was trading at $ 36,740 on Thursday at 7:05 a.m. in London. While the momentum might cheer the bulls, a team at JPMorgan Chase & Co. said backwardation in the futures market – where the spot price is above futures prices – is a cause for caution.

“We believe the return to backwardation has been a negative signal in recent weeks, suggesting a bear market,” JPMorgan strategists, led by Nikolaos Panigirtzoglou, wrote in a press release. They added that Bitcoin’s relatively low share of total crypto market value is another worrying trend.

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