JPMorgan Chase: The cryptocurrency market faces weak demand, Trump's proactive measures may boost the market

PANews reported on February 21 that, according to Jinshi, JPMorgan stated in a report on Wednesday that the cryptocurrency market lacks positive catalysts in the short term. The report said that in recent months, Bitcoin and Ethereum futures have been close to spot premiums, which is a sign of declining demand. A team of analysts led by Nikolaos Panigirtzoglou said: "This is a negative development indicating weak demand from institutional investors for exposure to these two cryptocurrencies through regulated CME futures contracts."

The bank pointed out that weak demand may be due to: The Trump administration's proactive measures on cryptocurrencies are more likely to be implemented in the second half of the year, meaning institutional investors may take profits due to lack of short-term catalysts. JPMorgan added that decreased demand from systematic and momentum-driven funds such as CTAs also affected Bitcoin and Ethereum futures.