Rising tensions in the Middle East and global geopolitical pressures continue to negatively impact Bitcoin, Ethereum, and other cryptocurrencies.
This has led to a significant slowdown in the capital flowing into the cryptocurrency market.
Wall Street giant JPMorgan has analyzed the current state of the cryptocurrency market in a new report.
JPMorgan stated that capital flows into cryptocurrencies slowed significantly in the first quarter of 2026, with total inflows remaining at approximately $11 billion during that period.
This rate is roughly one-third of the rate recorded in 2025.
JPMorgan analysts, led by Nikolaos Panigirtzoglou, stated that the market is becoming increasingly dependent on a very small group of buyers.
At this point, analysts noted that both individual and institutional investors remained quite hesitant in the first quarter of 2026, while the main force keeping the market afloat was MicroStrategy’s (now Strategy) Bitcoin (BTC) purchases.
“Strategy (MSTR) continues to be the most aggressive buyer in the market.”
The main inflows in the first quarter stemmed from Strategy’s Bitcoin purchases and concentrated crypto venture capital funding.
During the same period, Bitcoin miners were reportedly net sellers. Instead of selling due to panic, miners used their digital assets to increase liquidity, cover expenses, or manage debt during times of tighter financing conditions.
Analysts noted that the entire cryptocurrency market declined in the first quarter. Total market capitalization fell by approximately 20%, with Bitcoin dropping around 23% and ETH losing more than 30% of its value. The sell-off stemmed from macroeconomic and geopolitical pressures, with altcoins experiencing even larger declines.
*This is not investment advice.