JPMorgan Reports Weak Demand in Crypto Futures Market
- Bitcoin (BTC) and Ether (ETH) futures are nearing backwardation, indicating lower demand.
- Backwardation occurs when the spot price is higher than the futures price.
- The current market condition suggests institutional investors are taking profits.
- Demand from systematic and momentum-driven funds, such as CTAs, has decreased.
- Positive crypto initiatives from Trump’s administration expected in the second half of the year.
The recent correction in crypto markets has led to bitcoin and ether futures nearing backwardation, a sign of reduced demand according to JPMorgan’s report. This situation reflects institutional investors’ profit-taking behavior amid a lack of short-term catalysts.
Source (2.6)https://www.coindesk.com/markets/2025/02/21/crypto-market-faces-weak-demand-needs-trump-initiatives-to-kick-in-jpmorgan-says?rand=52298
