{"id":21358,"date":"2025-02-20T18:50:14","date_gmt":"2025-02-20T16:50:14","guid":{"rendered":"https:\/\/forklog.com\/en\/jpmorgan-observes-decline-in-bullish-sentiment-among-tradfi-whales\/"},"modified":"2025-02-20T18:50:14","modified_gmt":"2025-02-20T16:50:14","slug":"jpmorgan-observes-decline-in-bullish-sentiment-among-tradfi-whales","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/jpmorgan-observes-decline-in-bullish-sentiment-among-tradfi-whales\/","title":{"rendered":"JPMorgan Observes Decline in Bullish Sentiment Among TradFi Whales"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>In bitcoin futures, contango has shifted to backwardation, indicating sustained selling pressure in the near term.<\/li>\n<li>There is a high interest in call options with expirations in February-April.<\/li>\n<li>In altcoins, the focus may shift from Solana to Ethereum due to scandals surrounding meme coins.<\/li>\n<\/ul>\n<\/div>\n<p>The observed weakening of institutional demand for bitcoin and Ethereum futures on the <span data-descr=\"Chicago Mercantile Exchange\" class=\"old_tooltip\">CME<\/span> serves as a bearish signal for the near term. This conclusion was reached by JPMorgan, reports <a href=\"https:\/\/www.theblock.co\/post\/342362\/jpmorgan-crypto-downside-risk-bitcoin-ether-futures\">The Block<\/a>.<\/p>\n<p>Analysts noted a 15% decline in the total market value of digital assets from a record $3.72 trillion in December.<\/p>\n<p>As a result, futures on the first and second largest cryptocurrencies by market capitalization have approached a situation close to backwardation, similar to June and July of last year.<\/p>\n<p>The more typical state is contango, where derivatives trade at a premium to the spot. <\/p>\n<p>This parameter, often exceeding 10% annually, is driven by the high &#8220;risk-free&#8221; rate in cryptocurrency markets, where USD lending usually amounts to 5\u201310% per annum, specialists explained.<\/p>\n<p>Analysts cited the lack of positive catalysts and the waning of price momentum as reasons.<\/p>\n<p>Some institutional investors are taking profits due to a desire to adopt a wait-and-see approach, as US authorities&#8217; crypto-related initiatives are unlikely until the second half of the year.<\/p>\n<p>Meanwhile, momentum-driven funds are also reducing longs due to weakening signals. In Ethereum, the corresponding indicator has already turned negative.<\/p>\n<p>Given these trends, analysts warned of the potential for continued selling pressure in the near term.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Alternative Perspective<\/strong><\/h2>\n<p>QCP Capital has noted demand for high-delta call options on digital gold, indicating growing expectations of strong price increases in the future.<\/p>\n<p><script async src=\"https:\/\/telegram.org\/js\/telegram-widget.js?22\" data-telegram-post=\"QCPbroadcast\/1413\" data-width=\"100%\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe are seeing high interest in contracts with expirations in February-April. [\u2026] This is driven by Trump&#8217;s statements and <\/em><em>speculations around the bitcoin reserve<\/em><em>. [\u2026] Implied volatility has shifted in favor of calls across all terms, indicating market positioning for the second stage of a bull run,\u201d<\/em> the review states.<\/p>\n<\/blockquote>\n<p>Analysts noted an improvement in the macroeconomic backdrop for risky assets in light of reduced inflationary concerns, the rise of the S&#038;P 500 index to new highs, and the weakening of the US dollar.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Altcoins<\/strong><\/h2>\n<p>In a conversation with <a href=\"https:\/\/www.theblock.co\/post\/342375\/bitcoin-edges-higher-as-investors-digest-feds-inflation-concerns\">The Block<\/a>, BOB co-founder Dom Hartz noted that scandals surrounding LIBRA, and previously TRUMP, MELANIA, BARRON, and <a href=\"https:\/\/forklog.com\/en\/news\/investors-sue-hawk-token-team-over-unregistered-securities\">HAWK<\/a>, have undermined Solana&#8217;s reputation and increased pressure on the altcoin market.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe dominance of [meme tokens] in mainstream media and investor attention is waning, as seen by the decline in the value transferred on the blockchain,\u201d<\/em> the expert explained.<\/p>\n<\/blockquote>\n<p>According to Hartz, Solana is increasingly associated with fraud and sensational headlines rather than genuine innovation.<\/p>\n<p>On the other hand, Ethereum has maintained its reputation as the leading network for creators of innovative solutions. With the <a href=\"https:\/\/forklog.com\/en\/news\/pectra-steering-ethereum-toward-scale-and-mass-adoption\">Pectra<\/a> update on the horizon, developers and investors may refocus on ether.<\/p>\n<p>Iliya Kalchev from Nexo Dispatch noted the development of the regulatory environment for cryptocurrency ETFs as an additional driver for the \u201cnew market dynamics.\u201d <\/p>\n<p>Earlier, QCP Capital noted optimism in options maturing after the activation of Pectra.<\/p>\n<p>Ethereum faces \u201cintense competition\u201d from rival blockchain projects like Solana, according to JPMorgan analysts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In bitcoin futures, contango has shifted to backwardation, indicating sustained selling pressure in the near term. There is a high interest in call options with expirations in February-April. In altcoins, the focus may shift from Solana to Ethereum due to scandals surrounding meme coins. The observed weakening of institutional demand for bitcoin and Ethereum futures [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1168,46,229,1161,1150,1326,1159],"class_list":["post-21358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-crypto-derivatives","tag-ethereum","tag-jpmorgan","tag-memes","tag-news-plus","tag-qcp-capital","tag-solana-sol"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/21358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=21358"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/21358\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/21357"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=21358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=21358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=21358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}