Crypto Market Market: JPMORGAN warns against a possible fall

Financial markets respond not only to data, but also to the feelings and expectations of investors. In the crypto of the universe where there is a rule, every signal issued by the main institution can affect trends. This time it is JPMorgan that throws a sidewalk in the pond: The US bank estimates that the Bitcoins and Ethereum market is facing an increased lower risk as a result of the disconnection of institutional investors. Such an analysis is based on the development of CME term contracts that have signs of critical weakness.

JPMORGAN points to a decline in institutional demand

According to JPMorgan report, led by Nikolaos Panigirtzogla, the enthusiasm of institutional investors for crypts seems to be. Indeed, the bank observes a clear decline in demand on Bitcoins and Ethereum Terms of Treaties CME, a key indicator of the interest of the main players on the market. The total capacity of the market crypto has fallen by 15 %and is from $ 3,720 billion to $ 3,200 billion, a movement that was accompanied by a backward situation in term contracts. In other words, the prices of these contracts have fallen below the money market prices, which is a configuration that generally reflects the growing lack of interest in professional investors.

This trend is particularly concerned about JPMORGANA, which considers it a structural signal of reducing. In its report, the bank explains: “This is a negative development, indicating the weakness of demand from institutional investors who use regulated CME term contracts to issue these two crypts”. Lack of interest in the main financial institution can cause a more significant decline, with crypt markets historically affected by these capital flows.

A crypto market in the face of uncertainty and profits

If institutional investors raise their legs, it is largely caused by a macroeconomic context that does not contribute to an increased risk. According to JPMORGan, the main political decisions around Kryptos in the United States are not expected before the second half of the year, which recedes the floating period. Without strong catalysts, some actors prefer to take their profits while waiting for lighter signals.

It weighs other factors on request. JPMORGan emphasizes that the Funds of Trading with Movement, especially Sales Advisors of Raw Materials, reduce their exhibition, which further emphasizes sales pressure on the market. These business strategies, which are based on trends, have become less optimistic about Bitcoins and Ethereum in recent months. The weakening of technical signals of momentum means that these actors, often influencing, accept a more cautious posture, which strengthens the risk of more significant repairs.

The question is whether this decrease in institutional demand is only a temporary download or the beginning of a longer lower cycle. Some experts, such as Alliancebenstein experts believe that this type of correction is normal in the Bull Cycle and could be an opportunity for long -term investors. Others, on the other hand, point out that macroeconomic uncertainties and expectations of regulatory decisions could maintain long -term pressure on sale. Only one certainty: the crypto market enters the key phase where each signal will be carefully explored.

Luc Jose A.

Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.

Renunciation

The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.