Bitcoin (BTCUSD) held steady on Monday while popular altcoins plunged as the largest cryptocurrency by market cap regained its recent lack of volatility.

Meanwhile, JPMorgan analysts believe that the worst of the rypyocorrection may be over as the liquidation of long positions in CME Group's Bitcoin futures appears to be nearly complete, “so we see limited near-term downside risk in the cryptocurrency market.”

The recent correction in the cryptocurrency market mirrors a broader correction in other risk assets such as broad equities and tech stocks. The surge in positive news prompted cryptocurrency traders to move preemptively into long positions. The crucial events include a positive XRP ruling, PayPal’s stablecoin launch, optimism over the SEC’s approval of a numerous spot Bitcoin ETFs application, and expectations for the upcoming Bitcoin halving in 2024.

However, analysts expect a “new wave of legal uncertainty” in the cryptocurrency market as the SEC seeks to appeal the Ripple case. Similar considerations apply to the lingering final approvals of the recent array of spot Bitcoin ETFs.