TechFlow news, on February 20, according to The Block, JPMorgan analysts warned in a recent report that weakening institutional demand for CME Bitcoin and Ethereum futures could pose near-term downside risks to the crypto market.
The report noted that CME Bitcoin and Ethereum futures are approaching a "backwardation" state (where futures prices are below spot prices), indicating weak demand from institutional investors seeking crypto exposure via CME futures contracts. Analysts attribute this trend to two main factors: a lack of positive catalysts leading some institutions to take profits, and momentum-driven funds reducing their exposure.
JPMorgan Managing Director Nikolaos Panigirtzoglou stated that the new U.S. administration is unlikely to launch significant crypto-related initiatives before the second half of 2025, leaving investors in a wait-and-see posture. Currently, Ethereum's momentum signal has turned negative, and momentum signals for both Bitcoin and Ethereum have been steadily weakening over recent months.
