Bitcoin Selling Pressure Weakens, JPMorgan Flags Reduced Risk

Bitcoin may be entering a calmer phase. JPMorgan said selling pressure in the market has dropped sharply. The bank shared this view in an analyst note released on January 8, 2026. The report points to better market data. It suggests that the recent decline may be close to an end.

Bitcoin ETF Flows Are Stabilizing

JPMorgan highlighted changes in Bitcoin ETF flows. Earlier, ETFs saw heavy outflows as investors rushed to reduce risk. That trend has now slowed down. Flows are now moving toward a more balanced level. Inflows and outflows look almost close to equal. This shows that panic selling has gotten better.

Moreover, Bitcoin ETFs matter because they attract large investors. When ETFs see strong outflows, prices usually fall. When flows stabilize, selling pressure usually drops.

Bitcoin Futures Market Looks Healthier

The bank also looked at Bitcoin futures. During recent price drops, many traders closed positions quickly and so it increased downward pressure. That activity has now slowed and futures positions look more stable. JPMorgan says that this often happens near a market bottom.

This does not mean that the prices will rise immediately. It just suggests that sharp declines may become less likely.

Institutional Tone Is Changing

JPMorgan has always been careful about Bitcoin. In the past, it warned about high risk and strong volatility. This time, the bank focused on market stability. It did not issue a price target, but still, its tone signals a shift.

Many investors see this Bitcoin selling pressure trend as growing acceptance from traditional finance. The bigger banks now track Bitcoin like other major assets.

Crypto Community Turns Optimistic

The crypto community reacted positively. Many investors see lower selling pressure as a good sign. While some believe institutions may be accumulating Bitcoin quietly. Others link this trend to the post-halving cycle. Bitcoin supply growth slows after each halving. If ETF inflows return during this period, demand could rise faster than supply.

What Investors Should Watch

JPMorgan does not say that Bitcoin has entered a bull market. It simply says that the conditions have gotten better. Also, investors will keep watching ETF flows and futures data. Because these signals often show where the market is heading.

For now, Bitcoin appears more stable than in recent weeks. If this Bitcoin selling pressure trend continues, the market may move into a new consolidation phase before its next major move.