JPMorgan Analysts Are Bearish on Bitcoin in the Short-Term
The post JPMorgan Analysts Are Bearish on Bitcoin in the Short-Term appeared on BitcoinEthereumNews.com.
According to a team of analysts at banking giant JPMorgan, cryptocurrency-based futures on the CME exchange show weakening institutional demand. EXCLUSIVE: JPMorgan says crypto faces downside risk as bitcoin and ether futures show weak demand https://t.co/zTieK3snbX — The Block (@TheBlock__) February 20, 2025 The analysts led by Nikolaos Panigirtzoglou noted that Bitcoin and Ethereum futures on the CME are approaching backwardation, which is a scenario where futures contracts for an asset are priced lower than the asset’s spot market price. Backwardation is a signal of low demand. “This is a negative development and indicative of demand weakness by those institutional investors that use regulated CME futures contracts to gain exposure into these two cryptocurrencies.” The analysts also noted that momentum signals for both Bitcoin and Ethereum have been shifting downwards in the last 2 months, with Ethereum momentum signals already dropping into negative territory. Is crypto lacking short-term catalysts? Donald Trump’s victory in the U.S. election provided a major boost for Bitcoin, fueling the rally that brought BTC above the $100,000 mark for the first time ever. This is because Trump has positioned himself as firmly pro-crypto, promising a more favorable regulatory environment for cryptocurrencies and also discussing the possibility of the U.S. government establishing a strategic Bitcoin reserve. However, JPMorgan analysts don’t expect to see major cryptocurrency-focused initiatives from the U.S. government in the first half of the year, which is contributing to their bearish short-term outlook. Bitcoin has been displaying disappointing price action in the last month, with its price declining by 5.7%. BTC dropped below the $100,000 mark at the start of February, and has stayed below it since except for a short period on February 4. Long-term outlook remains bullish However, there are plenty of reasons to be bullish on Bitcoin from a more long-term perspective.…
Filed under: News - @ February 21, 2025 4:21 pm