The cryptocurrency market lacks positive catalysts in the short term, said Wall Street Bank JPMorgan (JPM) in a report on Wednesday.
The correction in cryptographic markets in recent months has seen Bitcoin (BTC) and Ethher (ETH) futures near decline, which is a sign of less demand, according to the report. The recoil occurs when the spot price of an asset is higher than the price of negotiation in the futures market.
“This is a negative and indicative development of the weakness of the demand by those institutional investors who use regulated CMEs contracts to obtain exposure to these two cryptocurrencies,” wrote the analysts led by Nikolaos Panigirtzoglou.
If Bitcoin and Ether’s demand for futures is healthy, the future costs more than the spot price, and it is said that the curve is in Account, the bank said.
When the demand slows down and price expectations are softened, the futures curve moves towards the recoil, added the bank.
This weakness in demand could be due to a series of reasons.
It is more likely that positive cryptographic initiatives of the new Trump administration are activated during the second half of the year, the bank said, and this means that institutional investors are probably obtaining profits due to the lack of short -term catalysts.
The lowest demand for systematic and driven funds for the moment, such as the CTA, has also affected Bitcoin and ether futures, JPMorgan added.
Read more: US Cryptographic Working Group
