JPMorgan says institutional interest in Bitcoin has waned.

Institutional investor interest in the first cryptocurrency has dried up and even turned negative after the May correction. This was stated by JPMorgan strategist Nikolaos Panigirtzoglou on CNBC.

He stressed that analysts had already noted a gradual slowdown in the inflow of funds from large investors into Bitcoin products as early as April 2021. Even then, some institutional investors had begun withdrawing money from the market, the analyst added.

“Institutional interest in Bitcoin and other cryptocurrencies dried up and even turned negative in May 2021. At the moment it is probably close to zero,” Panigirtzoglou said.

In April there was also a shift of funds from digital gold into altcoins, notably Ethereum. Now, according to him, the situation has reversed.

However, the inflow of institutional funds into Bitcoin lags well behind what was seen in Q4 2020, and overall the market is in a bearish phase, Panigirtzoglou noted. One of the indicators of the exit from it is the rise in Bitcoin’s market share above 50%. As of writing, the flagship’s dominance stands at 44.8%, according to CoinGecko.

Commenting on the volatility of Bitcoin’s price, the analyst said he expects it to stabilise in the coming weeks.

Earlier, Panigirtzoglou named the Bitcoin price level, which could rekindle institutional interest in the asset.