BTC back to 98K, JPMorgan warns of short-term pressure on the crypto market

Due to disappointing financial forecasts from the world's largest retailer Walmart exacerbating concerns about the main engine of the economy, the US stock market fell from its historical highs. Bitcoin returned to 98K, but JPMorgan warned that the encryption currency market may continue to face pressure in the short term.

Walmart financial forecast warns, U.S. stocks fall from historical highs

Walmart ('s stock price fell by 6.5% yesterday. Its CFO admitted the "uncertainty related to consumer behavior as well as global economic and geopolitical conditions". Just a few days ago, retail sales data showed a sharp decline in consumer spending. The decline in bank stocks also put pressure on the market, with both JPMorgan Chase and Goldman Sachs seeing their stock prices drop by more than 3.8%.

Matt Maley of Miller Tabak + Co. said, "This news from Walmart has raised more concerns about the consumer situation. We have seen some very disappointing consumer confidence data, and last week's retail sales data was well below expectations. This has raised some questions about how strong economic growth will be for the remainder of the year."

The US stock market fell from its historical highs. The S&P 500 fell by 0.43%, the Nasdaq fell by 0.47%. The Dow Jones Industrial Average dropped by 1.01%. The yield on 10-year Treasury bonds fell by 3 basis points to 4.50%. The Bloomberg Dollar Spot Index fell by 0.7%. As the market expects the Bank of Japan to raise interest rates soon, the yen led gains among major currencies.

BTC returns to 98K, JPMorgan warns

JPMorgan analysts warned that institutional demand for CME Bitcoin and Ethereum futures on the Chicago Mercantile Exchange )CME( has weakened, which is a bearish signal for the cryptocurrency market in the short term.

The total market value of encryption has dropped by 15% from its historical high of $3.72 trillion on December 17 to around $3.17 trillion. JPMorgan pointed out in its report on Wednesday that this downturn has led to a 'backwardation' of BTC and Ethereum futures on CME, where futures prices are lower than spot prices, similar to the situation in June and July last year.

This is a negative development, indicating weak demand from institutional investors using regulated CME futures contracts to invest in these two encryption currencies.

JPMorgan pointed out that the lack of regulatory easing as a positive catalyst, and the ongoing reduction of exposure to risky assets by momentum-based funds such as commodity trading advisors, further suppresses demand, the cryptocurrency market may continue to face pressure in the short term.

This article BTC returns to 98K, JPMorgan warns that the encryption market is under short-term pressure first appeared on Chain News ABMedia.