JPMorgan Reports Weak Demand in Crypto Market, Expects Future Initiatives
JPMorgan's recent report indicates a lack of positive catalysts in the cryptocurrency market.
- Correction in crypto markets has led to bitcoin and ether futures nearing backwardation, indicating lower demand.
- Backwardation occurs when spot prices exceed futures prices, suggesting institutional investors' weakening interest.
- Healthy demand typically results in contango, where futures prices are higher than spot prices.
- Weak demand may stem from profit-taking by institutional investors amid a lack of short-term catalysts.
- Lower activity from systematic and momentum-driven funds is impacting futures for both cryptocurrencies.