JPMorgan believes the recent correction in crypto markets may be approaching exhaustion, with new data pointing to early stabilization after months of heavy de-risking.

In a Wednesday report, the bank said flow and positioning indicators suggest the selloff that weighed on crypto into year-end may be approaching a bottom rather than setting up another sharp leg lower.

Market experts led by Nikolaos Panigirtzoglou highlighted improving signals across exchange-traded funds and derivatives markets.

According to the team, “Signs of a bottoming out in January are also seen in other crypto indicators in perpetual futures and in our position proxies on CME futures.” They…