JPMorgan warns that crypto inflows are drying up amid rising macroeconomic pressures.

The crypto market started 2026 on shaky ground, and things have gotten worse as geopolitical tensions increase. Investors who once expected rate cuts are now facing the possibility of sustained high interest rates, which is putting more strain on digital assets.
JPMorgan’s latest report points to a straightforward problem: demand is weakening.
In the first quarter, crypto inflows totaled about $11 billion, which is only a small portion of what was seen during the same period in 2025. Despite occasional support from ETFs, inflows have been uneven and lack strong commitment. If this keeps up, total inflows for 2026 might only reach $44 billion, down sharply from $130 billion last year.
The bank’s analysis looks at several areas driving demand, including ETFs, CME futures, venture capital, and corporate treasury activity. Across these areas, the trend is clear—participation is slowing down. Open interest in CME futures has dropped, suggesting less institutional involvement.
On the corporate side, there’s a noticeable change. Treasury-driven buying has slowed a lot. Besides Strategy funds, few companies are actively buying Bitcoin. For Ethereum, institutional interest has also declined, with only a few players investing while others move capital back to traditional stocks.
Another emerging pressure comes from miners. Public Bitcoin mining companies became net sellers in the first quarter. Some are shifting resources toward AI businesses, indicating a longer-term change that could affect supply and network security.
Taken together, three factors are putting pressure on the market: declining institutional demand, weak and uneven inflows, and miners shifting their strategies.
This creates an unstable market where demand depends mainly on a small group of dedicated buyers.
Looking forward, the market’s recovery depends largely on macroeconomic factors. If liquidity improves, rates come down, or global risk sentiment gets better, inflows might stabilize. Without these changes, crypto will likely face continued pressure, making 2026 a tougher year than the one before.
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