Latest cryptocurrency news, Bitcoin experienced a drop in its price of over 15% compared to the price at the start of the month. Other cryptocurrencies fell even lower including Ethereum. China’s decision to consider all financial activities related to cryptocurrency illegal sent the value of bitcoin farther down. As a result of China’s policy, $150 billion worth of value was wiped off of the combined crypto market.
In the wake of China’s crackdown on bitcoin and crypto, analysts at JP Morgan, a Wall Street giant have sent out a warning that big investors are pulling out of bitcoin futures in order to invest in Ethereum in the midst of a ” strong divergence in demand.”
According to the analysts at JP Morgan, this shift in trend has come about due to the softening of expectations for the most prominent cryptocurrency.
The expectations softened after the bitcoin traded at a price lower than the actual bitcoin this month. Analysts said, “This is a setback for bitcoin and a reflection of weak demand by institutional investors that tend to use regulated CME futures contracts to gain exposure to bitcoin.” Business Insider reported a fall of 10% in the prices of bitcoin last month.
Consequently, institutional investors began trading in Ethereum. JP Morgan’s analysts added that the 21-day average Ethereum premium increased to one percent more than the actual ether prices. “This points to much healthier demand for Ethereum vs. bitcoin by institutional investors.” analysts noted.
