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Crypto Market Faces Weak Demand, Needs Trump Initiatives to Kick In, JPMorgan Says

Crypto Market Faces Weak Demand, Needs Trump Initiatives to Kick In, JPMorgan Says
JPMorgan has stated in a report that the cryptocurrency market is currently lacking positive catalysts in the near term. The recent correction in the crypto markets has led to both bitcoin and ether futures nearing backwardation, indicating lower demand. This is seen as a negative development and suggests that institutional investors using regulated CME futures contracts are displaying weakness in demand. The bank believes that the lack of short-term catalysts, along with the anticipation of positive crypto initiatives from the Biden administration later in the year, is causing institutional investors to take profits. JPMorgan also notes that lower demand from systematic and momentum-driven funds has contributed to the weakness in bitcoin and ether futures.

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