Analysts of the American financial holding JPMorgan Chase & Co said that the long-term stagnation of the cryptocurrency market scares the industry of institutional investors, reports Bloomberg .
"The interest of financial institutions to trade in Bitcoin, apparently, is fading away," JPMorgan said.
According to analysts, the performance of key metrics showed a negative trend in the Bitcoin futures market. In particular, in November at the Chicago Stock Exchange of Options (CBOE) there was a decrease in the number of open positions – activity on Bitcoin futures was equivalent to December last year at the time of the tool launch.
Referring to the data of the Commodity Exchange Trading Commission (CFTC), analysts added that the most frequently used contracts on the Chicago Mercantile Exchange (CME) "are close to the minimum of 2018". However, back in October, CME representatives stated that in the third quarter, the average daily trading volume in bitcoin futures grew by 41%.
The JPMorgan Chase & Co study also notes that the average daily transaction size has dropped from $ 5,000 to $ 160 since reaching peak price indicators in December last year.
"Other cryptocurrencies are still disproportionately affected at this stage of the correction, " added analysts.
Recall that in August, Lori Bir, director of information technology (CIO) of JPMorgan American bank, said that the blockchain will replace competing technologies for several years.
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