The first financial service firm JPMorgan claims that Bitcoin and the wider market of cryptography are faced with a short -term decrease risk.
In the past few weeks, Bitcoin And the wider market of the crypto has failed to establish a clear direction in the midst of macroeconomic concerns as Persistent inflation and a potential trade war. According to a recent JPMorgan report, the relief may not be soon – quite the opposite.
JPMorgan prevents the risk of decrease
The first financial service firm JPMorgan said that the cryptography market faces a short -term drop in short -term.
JPMorgan analysts revealed this in a note on Wednesday, February 19, invoking a low demand from institutional investors. More specifically, they stressed that the term contracts on CME Bitcoin and Ethereum are approaching a “backwarding” state when the prices fall below punctual prices due to low demand for low prices expectations.
Analysts argued that this lack of demand could expose the market to the short -term decrease pressure.
JPMorgan noted that the market showed a similar trend in June and July 2024. During this period, Bitcoin dropped from 26% by more than $ 72,000 to $ 53,500.
What stimulates this lack of demand?
No short -term positive catalysts and “Momentum decomposition”
JPMorgan cited two reasons to weaken crypto demand from institutional investors.
First, the asset manager noted that this class of investors seems to be making profits in a lack of positive short -term catalysts, stressing that Pro-Crypto initiatives in the United States It was unlikely to have an impact on the market until the second half, leaving investors on the fence.
Second, analysts argued that Bitcoin and Ethereum face the “decomposition of the momentum”, citing a drop in the momentum signal of the two assets, because the surge -oriented funds such as trading advisers of basic products have reduced their exhibition. They noted that the Ethereum impetus signal was already in the negative.
Difles: This content is informative and should not be considered financial advice. The opinions expressed in this article may include the author’s personal opinions and do not reflect the basic opinion of cryptography. Readers are encouraged to do in -depth research before making investment decisions. The Crypto Basic is not responsible for financial losses.
