Bitcoin Demand Slumps as JPMorgan Sees Weakness

Bitcoin (BTC), the world's largest cryptocurrency, is currently grappling with a decline in demand, according to a recent report by U.S. banking giant JPMorgan Chase (JPM). The bank's analyst, Nikolaos Panigirtzoglou, attributes this weakness to several factors, including institutional investors taking profits after a significant rally in Bitcoin last autumn and the lack of near-term supportive policies from U.S. President Donald Trump.

The price of BTC has slumped in recent weeks, with the largest cryptocurrency now trading at around $98,320, down from its record high of $109,300 reached on January 20, 2021. This decline is indicative of weak demand in the crypto market, according to JPMorgan. Additionally, lower demand from momentum-driven funds is also likely contributing to the current slump in crypto prices.

Despite the recent downturn, there was some positive news for the crypto sector. Coinbase Global (COIN), a leading cryptocurrency exchange, announced that the U.S. Securities and Exchange Commission (SEC) has dropped its enforcement case against the company. Analysts believe that the dismissal of the Coinbase case will have long-term positive implications for other crypto enforcement cases and the industry as a whole.

While most Wall Street firms do not offer ratings or price targets on Bitcoin, the cryptocurrency's price has declined by approximately 0.79% over the past 12 weeks. This decline is a reflection of the broader weakness in the crypto market, as highlighted by JPMorgan's report.