Analysts point to weakening demand, with futures prices nearing backwardation\u2014a sign that institutional investors are stepping back. This typically indicates a lack of confidence, as futures contracts usually trade at a premium in strong markets.<\/p>\n
Several factors are driving this trend, including the delay in pro-crypto policies expected under the Trump administration, institutional profit-taking after recent gains, and a lack of momentum from systematic funds like CTAs. Without immediate catalysts, the market faces a cooling period, though a potential policy shift later in the year could reignite investor confidence.<\/p>\n
JPMorgan\u2019s analysts suggest that until there is greater regulatory clarity or new institutional inflows, Bitcoin<\/a> <\/strong>and Ethereum<\/a> <\/strong>may struggle to sustain upward momentum. The bank also notes that while long-term sentiment remains positive, the current lack of speculative interest could keep prices range-bound in the near term.<\/p>\n