In a new report, U.S. bank JPMorgan Chase (JPM) says that the cryptocurrency market is struggling with weak demand and a lack of positive catalysts.
The result has led prices for the largest and most popular cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) to slump in recent weeks, says the bank.
“This is a negative development and indicative of demand weakness,” writes JPMorgan analyst Nikolaos Panigirtzoglou in a note to clients.
The current weakness in the crypto market is likely due to several factors, says the analyst, including institutional investors taking profits after a big run in Bitcoin last autumn.
Additionally, supportive crypto policies and initiatives 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.
Lower demand from momentum-driven funds is also likely impacting demand for crypto currently, says JPMorgan.
The price of Bitcoin, the largest cryptocurrency by market capitalization, is presently at $99,000 U.S., down from a record high of $109,300 U.S. reached on Jan. 20 of this year.
