Bitcoin’s struggle to maintain momentum above $100,000 has sparked concerns among investors. JPMorgan analysts have identified declining institutional interest as a key factor holding back the cryptocurrency’s price growth.
Market Analysis: Institutional Demand Shows Warning Signs
JPMorgan’s latest research reveals a troubling trend in the crypto markets. The Bitcoin and Ethereum futures markets on CME show signs of backwardation. This means spot prices exceed futures prices. This unusual market condition typically signals bearish sentiment.
Nikolaos Panigirtzoglou, JPMorgan’s lead analyst, points to weakening demand from institutional investors. Systematic and momentum-driven funds have reduced their exposure to crypto futures. This shift marks a significant change from the institutional buying that drove Bitcoin above $100,000.
Political and Regulatory Impact
The crypto market faces additional headwinds from policy uncertainty. The Trump administration’s crypto-friendly stance hasn’t translated into immediate action. Major regulatory reforms likely won’t materialize until late 2025. This regulatory limbo has dampened investor enthusiasm.
Market Manipulation Concerns
Industry experts raise questions about potential price suppression. Samson Mow, Jan3’s CEO, suggests Bitcoin’s price action appears “manufactured.” Large market participants continue selling despite steady retail buying. The increased presence of institutional players may enable more sophisticated market manipulation.
Technical Outlook
Bitcoin currently trades at $96,180, showing a 2% decline. The price action suggests continued consolidation around the $100,000 level. Support levels exist at $95,000 and $92,000. Resistance remains strong at $100,000 and $102,000.
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Long-term Perspective
Despite current challenges, analysts maintain bullish long-term outlooks. Price targets range from $150,000 to $2 million. The market awaits fresh catalysts to drive the next leg up. Institutional adoption remains crucial for sustained growth.
Tags: Bitcoin Price, Institutional Investment, Market Analysis, JPMorgan, Crypto Futures
Source: NewsbtC