Bitcoin (BTC) and Other Cryptocurrencies Are Suffering from Weak Demand, Says JPMorgan

In a new report, U.S. bank JPMorgan Chase (JPM) says that Bitcoin (BTC) and other cryptocurrencies are suffering from weak demand and a lack of positive catalysts.

Major U.S. bank JPMorgan Chase (NYSE:JPM) says that Bitcoin (BTC) and other cryptocurrencies are suffering from weak demand and a lack of positive catalysts, which has caused prices for the largest and most popular digital currencies to slide in recent weeks.

“This is a negative development and indicative of demand weakness,” JPMorgan analyst Nikolaos Panigirtzoglou wrote in a note to clients, adding that institutional investors cashing out after Bitcoin’s big run last fall is likely also contributing to the current weakness in the crypto market.

Moreover, supportive crypto policies from U.S. President Donald Trump aren’t likely to kick-in until the second half of this year, leaving crypto without any near-term catalysts.

Slumping Demand

Lower demand from momentum-driven funds is also likely impacting demand for crypto currently, adds JPMorgan. The price of BTC, the largest crypto by market capitalization, is currently at $98,320, down from a record high of $109,300 on Jan. 20 of this year, the date of Trump’s inauguration.

In other crypto news, exchange Coinbase Global (NASDAQ:COIN) announced that the U.S. Securities and Exchange Commission (SEC) has dropped its enforcement case against the company. Analysts say dismissal of the Coinbase case will have long-term positive ramifications for other crypto enforcement cases and the industry as a whole.

Is BTC a Buy?

Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 0.79% in the last 12 weeks.