JPMorgan Highlights Lack Of Short-Term Catalysts In Cryptocurrency Market

According to Odaily, JPMorgan released a report on Wednesday indicating a lack of short-term positive catalysts in the cryptocurrency market. The report highlighted that Bitcoin and Ethereum futures have been trading close to spot prices in recent months, signaling a decline in demand. The analyst team, led by Nikolaos Panigirtzoglou, described this as a negative development, suggesting weak demand from institutional investors seeking exposure to these cryptocurrencies through regulated CME futures contracts. JPMorgan noted that the weak demand might be attributed to the potential implementation of U.S. President Donald Trump's cryptocurrency initiatives, which are more likely to take effect in the latter half of the year. This situation implies that institutional investors might be taking profits due to the absence of short-term catalysts. Additionally, the bank mentioned that the reduced demand from systematic and momentum-driven funds, such as CTAs, has also impacted Bitcoin and Ethereum futures.