CNBC Pro

JPMorgan says there's weak bitcoin demand from big investors and a crypto bear market could be on the way

Share
A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken May 19, 2021.
Dado Ruvic | Reuters

A bitcoin bear market could be on the way as the demand from big investors to support the cryptocurrency — a key narrative of the bulls — is just not there, according to JPMorgan analyst Nikolaos Panigirtzoglou.

The bitcoin futures curve is in so-called backwardation, meaning the current spot price of bitcoin is higher than that of the futures contracts. This is happening for the first time since 2018, the quantitative analyst said, and is a signal of the lack of interest from the institutional buyer.

More In Pro Insight

CNBC ProTom Lee is changing his view on which stocks may lead the market's next leg higher
watch now
VIDEO02:38
CNBC ProHere's a good way to invest in the booming EV sector, says strategist David Roche
CNBC ProEV stocks are 'overpriced' — but there's a good way to play them, says strategist