{"id":14271,"date":"2025-02-21T09:16:51","date_gmt":"2025-02-21T09:16:51","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=14271"},"modified":"2025-02-21T09:16:51","modified_gmt":"2025-02-21T09:16:51","slug":"crypto-market-faces-weak-demand-needs-trump-initiatives-to-kick-in-jpmorgan-says","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=14271","title":{"rendered":"Crypto Market Faces Weak Demand, Needs Trump Initiatives to Kick In, JPMorgan Says"},"content":{"rendered":"<div>\n<p>The cryptocurrency market is lacking positive catalysts in the near term, Wall Street bank JPMorgan (JPM) said in a report Wednesday.<\/p>\n<p>The correction in crypto markets in recent months has seen both bitcoin (<a href=\"https:\/\/www.coindesk.com\/price\/bitcoin\/\" target=\"_blank\">BTC<\/a>) and ether (<a href=\"https:\/\/www.coindesk.com\/price\/ethereum\/\" target=\"_blank\">ETH<\/a>) futures near backwardation, which is a sign of lower demand, the report said. <a href=\"https:\/\/www.investopedia.com\/terms\/b\/backwardation.asp\" target=\"_blank\">Backwardation<\/a> occurs when the spot price of an asset is higher than the price trading in the futures market.<\/p>\n<p>&#8220;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,&#8221; analysts led Nikolaos Panigirtzoglou wrote.<\/p>\n<p>If demand for bitcoin and ether futures is healthy, the futures cost more than the spot price, and the curve is said to be in <a href=\"https:\/\/www.investopedia.com\/terms\/c\/contango.asp\" target=\"_blank\">contango<\/a>, the bank noted.<\/p>\n<p>When demand slows and price expectations soften, the futures curve moves towards backwardation, the bank added. <\/p>\n<p>This weakness in demand could be due to a number of reasons. <\/p>\n<p>Positive crypto initiatives by Trump&#8217;s new administration are more likely to kick in during the second half of the year, the bank said, and this means institutional investors are likely taking profits due to a lack of short-term catalysts.<\/p>\n<p>Lower demand from systematic and momentum-driven funds, such as CTAs, has also affected bitcoin and ether futures, JPMorgan added.<\/p>\n<p>Read more: <a href=\"https:\/\/www.coindesk.com\/markets\/2025\/02\/17\/u-s-crypto-task-force-to-focus-on-delivering-national-bitcoin-reserve-bernstein\" target=\"_blank\">U.S. Crypto Task Force to Focus on Delivering National Bitcoin Reserve: Bernstein<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency market is lacking positive catalysts in the near term, Wall Street bank JPMorgan (JPM) said in a report Wednesday. The correction in crypto markets in recent months has seen both bitcoin (BTC) and ether (ETH) futures near backwardation, which is a sign of lower demand, the report said. Backwardation occurs when the spot [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-14271","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14271"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14271\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}