JPMorgan: Bitcoin's correction may be nearing its end, ETF fund outflows have significantly cooled down

JPMorgan’s latest outlook suggests that the current Bitcoin price correction may be nearing its end. As the outflow of funds from Bitcoin and Ethereum ETFs continues to slow, the previous concentrated selling pressure in the crypto market is significantly easing, and Bitcoin’s price is gradually stabilizing around $94,000.

In the report, JPMorgan analyst Nicholas Panigirtzoglou pointed out that since January 2026, the outflow of funds from spot Bitcoin ETFs and Ethereum ETFs has been narrowing continuously. The futures market positions and momentum indicators show that the de-risking process among institutions and leveraged funds is close to completion. He believes that, barring any new systemic shocks, retail selling behavior is likely to gradually end during this cycle.

JPMorgan also emphasized that recent market declines are not driven by on-chain or liquidity crises. On the contrary, overall market liquidity remains relatively healthy. The core reason for this correction is more related to structural factors at the index level rather than deterioration in the fundamentals of crypto assets.

The report mentioned that MSCI signaled in October 2025 that it was considering removing some crypto-related companies during index rebalancing. This expectation initially triggered risk hedging and early position reductions among passive funds, putting downward pressure on market sentiment. However, MSCI later confirmed that in the February 2026 global stock index rebalancing, crypto-related companies would not be excluded, significantly reducing the likelihood of forced selling caused by index rebalancing.

JPMorgan believes this decision provides an important short-term buffer for the crypto market and boosts confidence that a “phase bottom” is forming. Steady ETF fund flows, a return to neutral futures positions, and the fading of index-related uncertainties are collectively supporting Bitcoin’s price.

Market data shows that as of the latest trading day, Bitcoin’s price remains around $94,000 with fluctuations. JPMorgan summarized that, although short-term volatility may still occur, the main risks of this correction have been gradually absorbed by the market based on institutional behavior and fund structure.