of 2026 cryptocurrencies We already predicted that it would start badly and that the first quarter would be bad. However, the outbreak of war negatively affected the expectations for the rest of the year. Now, instead of talking about how quickly the Fed will cut interest rates, we are worried about the possibility of an interest rate increase. So how do JPMorgan analysts see the current situation?
JPMorgan cryptocurrency report
In our evaluation yesterday, we mentioned that spot demand was in negative. ETF Although demand in the channel increases periodically, it is not stable. JPM analysts also confirm that demand has fallen sharply in the new year. Cryptocurrency flow remained at approximately 11 billion dollars in the past 3 months. Only 33% of the entries we saw in the first quarter of 2025 were reached.
If things do not get worse and cryptocurrencies continue to see inflows at the same pace, there will be a maximum inflow of $44 billion for 2026. This is very low compared to last year’s $130 billion inflow.
How do analysts calculate this? They arrive at the total by combining the ETF channel, CME futures activity, crypto VC funding, and corporate treasury purchases by companies like Strategy. The report by JPMorgan analysts led by Managing Director Nikolaos Panigirtzoglou stated that CME futures positions weakened in the first quarter compared to 2024 and 2025, indicating that institutional demand through futures has turned negative so far this year.
The slowdown in corporate buyers had an impact on the first quarter performance;
“In the first quarter of 2026, Strategy’s Bitcoin The purchases were financed mainly through the issuance of stock. Additionally, the company has stated its intention to continue using a mix of common stock and indefinite preferred stock to support ongoing Bitcoin accumulation, while other corporate treasuries have taken a rather defensive stance.”
This is an issue we have drawn attention to before; since the risks have become evident and treasury companies have not received as much attention as before, those outside of Strategy have rarely been able to purchase BTC. On the ETH front, only BitMine remains. Even as of November ETHZilla Examples such as forced to sell crypto and buy shares.
Miners also sell
Three months into the year, publicly traded Bitcoin mining companies were also on the sell side. While network difficulty has fallen sharply, some large miners have started to use computing power for artificial intelligence, leading to comments that long-term interest here has also been damaged. JPM analysts not only because of market concerns but also because of companies’ A.I. It confirms that we are seeing sales due to the shift to the side.
“As a result, our forecast for overall digital asset flows slowed significantly in the first quarter of the year, running at close to a third of last year’s pace on an annualized basis. Additionally, retail and institutional investor flows have remained low or even negative since the beginning of the year; the bulk of digital asset flows in the first quarter of 2026 were driven by Strategy’s Bitcoin purchases and concentrated crypto VC funding.” – JPMorgan
