JPMorgan Report: Bitcoin and Ethereum Futures Face Weak Demand Amid Lack of Short-Term Catalysts

On February 21st, COINOTAG reported that JPMorgan Chase has identified a lack of positive short-term catalysts within the cryptocurrency market. According to their analysis, Bitcoin and Ethereum futures have been trading closely to spot premiums, reflecting a downward trend in demand. The team, spearheaded by analyst Nikolaos Panigirtzoglou, indicated that this trend signifies a troubling outlook, particularly as institutional investor interest in these digital assets via regulated CME futures contracts appears to be waning.

The decreased demand is potentially linked to the anticipated favorable regulatory actions from the Trump administration regarding cryptocurrency, which are expected to materialize in the latter half of the year. This uncertainty may prompt institutional investors to realize profits amid a vacuum of short-term growth drivers. Furthermore, JPMorgan emphasized that the decline in interest from systematic and momentum-driven funds, including Commodity Trading Advisors (CTAs), has contributed significantly to the current state of Bitcoin and Ethereum futures.