Wall Street Bank JPMorgan (JPM), on Wednesday in a report published in the crypto currency market in the short term positive catalysts, he said.

The report emphasized that the market correction in recent months caused Bitcoin (BTC) and Ether (ETH) to approach the backward point, which is a sign of low demand.

Backwardation is a situation where the spot price of an asset is higher than the price traded in the futures market. This usually points to the weakness of demand in the market.

JPMorgan analysts call it a “negative development” and states that it is an indication of demand weakness for corporate investors who invest in crypto currencies such as Bitcoin and Ether by using CME futures contracts.

On the contrary, if the demand for Bitcoin and Ether Term Trading Markets is healthy, the term transaction prices will be above spot prices, which causes the price curve to be called “Contango” (rising price tendency).

However, when the demand slows down and the price expectations weaken, the price curve shifts to the backward direction. This can be seen if investors in the market lose their confidence in crypto currencies and are more cautious about future price increases.

According to JPMorgan, there are several possible reasons for this demand weakness in crypto money markets. First, Trump’s new administration’s new administration of crypto currency is expected to come into play in the second half of the year.

This shows that corporate investors may be getting their profits due to lack of catalysts in the short term. Investors realize their profits by reducing their existing investments because they do not expect a major movement in the short term.

In addition, systematic and momentum -oriented funds, especially the funds investing in trade -guiding strategies, Bitcoin and Ether, such as crypto currencies are mentioned as one of the other important factors that reduce the demand.

These funds usually react rapidly to market movements, and if the prices fall, there is a decrease in investment. JPMorgan suggests that the low demand of such funds has significant effects in the Bitcoin and Ether futures market.

JPMorgan’s report states that uncertainties in how these developments in crypto currency markets will be shaped in the future.

The crypto money market has experienced major fluctuations in recent years and has been a high -risk area for investors. However, in the long run, the development of crypto currency markets and demand for more interest of corporate investors is expected to increase again.

On the other hand, due to the current weak demand, uncertainty in the market and short -term catalyst lack, it can put pressure on the prices of crypto currencies. These developments are a situation that needs to be carefully monitored, especially for large investors and institutions.