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

ChainCatcher news, JPMorgan stated in a report on Wednesday that the cryptocurrency market lacks positive catalysts in the short term.

The report noted that the recent convergence of Bitcoin and Ethereum futures to spot premiums is a sign of declining demand. The analyst team led by Nikolaos Panigirtzoglou stated, "This is a negative development indicating weak institutional investor demand for exposure to these two cryptocurrencies through regulated CME futures contracts."

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