The cryptocurrency market lacks the short-term positive catalysts, the Wall Street Bank Jpmorgan (JPM) said on Wednesday in a report.
Correction on cryptographic markets in recent months has seen both Bitcoin (BTC) and Ether (ETH) contracts near the background, which is a lower sign of demand, depending on the report. The rear occurs when the price in cash is higher than the negotiation of prices on the term market.
“This is a negative and indicative development of the weakness of demand by institutional investors who use regulated CME term contracts to obtain exposure in these two cryptocurrencies,” wrote Nikolaos Panigirtrzoglou analysts.
If the request for Bitcoin and the term contracts on ether is healthy, the term contracts cost more than the cash price and the curve would be in Contango, noted the bank.
When the request slows down and the expectations of the prices soften, the term curve goes to the background, added the bank.
This weakness of demand could be due to a number of reasons.
Crypto positive initiatives of the new Trump administration are more likely to start in the second half, said the bank, which means that institutional investors are likely to take advantage due to a short -term lack of catalysts.
The lower demand for systematic and momentum funds, such as CTAs, also affected future bitcoin and ether, added JPMorgan.
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