JPMorgan notes a sharp decline in capital inflows into the crypto market - ForkLog: cryptocurrencies, AI, singularity, the future

# JPMorgan noted a sharp drop in inflows to the crypto market

At JPMorgan, they recorded a sharp decline in capital inflows into crypto assets in the first quarter of 2026, even though earlier expectations had been for it to increase. This is reported by The Block.

According to the bank analysts led by Managing Director Nikolaos Panigirtzoglou, total flows into digital assets over the three months amounted to about ~$11 billion. This is roughly three times lower than the figure for the same period last year.

If the current trend in inflows continues for the full 12 months, they will come to around $44 billion, which is significantly lower than ~$130 billion in 2025.

Source: The Block.## Shift in demand structure and pressure on miners

The bulk of inflows in the first quarter was driven by corporate purchases of bitcoin and venture investments.

At the same time, activity in the DAT segment was mixed. While a small group of players led by Strategy continued to build positions, a number of smaller companies sold off their assets to meet obligations and buy back shares.

Analysts noted that the market is becoming increasingly dependent on a limited number of large participants, rather than on broad demand from institutional and retail investors.

Additional cooling signals during the first quarter included:

• outflows from spot bitcoin- and Ethereum-based ETFs;
• a reduction in positions in CME futures;
• a shift in institutional demand into negative territory.

At the same time, in March there was partial restoration of inflows into exchange-traded BTC funds, the analysts уточнили.

A significant factor weighing on capital inflows into cryptocurrencies was that in the first quarter mining companies acted as net sellers of bitcoin. At JPMorgan, they explained this by tighter financing conditions for cryptocurrency miners and the need to maintain liquidity. In some cases, the sale of assets was linked to costs associated with diversification into AI services.

Venture financing volume in the first quarter remained at a high level—the growth rate outpaced the figures from the previous two years. However, the number of deals and participants declined, and investor interest became concentrated in a smaller number of large rounds, the bank’s specialists noted.

Recall that in March, the activity of retail bitcoin investors fell to a minimum since 2017, reported an analyst using the pseudonym Darkfost.