In a new report, the American bank Jpmorgan Chase (JPM) says that the cryptocurrency market is struggling with low demand and a lack of positive catalysts.
The result has led prices for the most important and most popular cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) to collapse in recent weeks, the bank said.
“This is a negative and indicative development of the weakness of demand,” writes JPMorgan analyst Nikolaos Panigirtzoglou in a note to customers.
The current weakness of the cryptography market is probably due to several factors, explains the analyst, in particular institutional investors who benefit from profits after a large race in Bitcoin last fall.
In addition, crypto policies and support initiatives by American president Donald Trump are not likely to get started before this year’s second half, leaving the crypto without any short -term catalyst.
Decreasing the demand for surge -ordered funds also has an impact on the demand for crypto currently, explains JPMorgan.
The Bitcoin price, the largest cryptocurrency by market capitalization, is currently at US $ 99,000, down from a record summit of US $ 109,300 reached on January 20 of this year.
