JPMorgan's cryptocurrency market analysts accept pointed to the difference betwixt Bitcoin's (BTC) spot prices and BTC futures prices as a potential surly sign for the marketplace.

In a Thursday annotation to clients, JPMorgan analysts led past global market strategist Nikolaos Panigirtzoglou wrote that the Bitcoin market place has returned to backwardation — a situation when the spot toll is above futures prices. The analysts said that the past calendar month's correction in crypto markets saw Bitcoin futures reversing into backwardation for the get-go time since 2018.

According to the strategists, Bitcoin futures backwardation should be viewed as a negative sign for BTC toll despite a major rebound on the marketplace over the past two days, with Bitcoin striking $37,500 on Thursday. The analysts stressed that the Bitcoin futures curve was in backwardation for most of 2018, a year when Bitcoin dropped 74% later on hitting its so-historic high of $20,000 in late 2017:

"We believe that the render to backwardation in recent weeks has been a negative point pointing to a bear market place. [...] In our stance the shift in Bitcoin futures into backwardation is a bearish indicate echoing 2018."

In the latest analysis, JPMorgan specifically looked at a 21-twenty-four hour period moving average of the second Bitcoin futures spread over spot prices. The analysts observed an "unusual development and a reflection of how weak Bitcoin need is at the moment from institutional investors" who trade futures contracts on the Chicago Mercantile Exchange.

The analysts too noted that Bitcoin's weakened share in the full crypto market value is another concerning trend. As previously reported past Cointelegraph, Bitcoin dominance on crypto markets tanked to twoscore% in belatedly May, marking the everyman share over the by three years later surging in a higher place 70% this January.

At the time of writing, Bitcoin's share in the total crypto market capitalization is 43%, accounting for $682 billion out of the full crypto market value of $1.six trillion, co-ordinate to data from CoinMarketCap. Some analysts like crypto index provider Stack Funds believe that BTC dominance could retest its previous highs in the short term.

Bitcoin authority pct best chart. Source: CoinMarketCap