Due to the disappointing financial forecast of the world's largest retailer Walmart, which has heightened concerns about the main engine of the economy, the US stock market has retreated from its historical highs. Bit returned to 98K, but JPMorgan warned that the cryptocurrency market may continue to face pressure in the short term.

Walmart's financial forecast warning, US stocks retreated from historical highs

Walmart Company's stock price fell 6.5% yesterday. Its Chief Financial Officer admitted that "there is uncertainty related to consumer behavior and global economic and geopolitical conditions." A few days ago, retail sales data showed a sharp decline in consumer spending. The decline in bank stocks also put pressure on trading, with JPMorgan and Goldman Sachs Group stocks falling more than 3.8%.

Matt Maley of Miller Tabak + Co. said: "Walmart's news has raised more concerns about the state of the consumer. We've seen some very disappointing consumer confidence data, and last week's retail sales data was well below expectations. This has raised some questions about how strong the economic growth will be for the rest of the year."

US stocks retreated from historical highs. The S&P 500 index fell 0.43%, the Nasdaq index fell 0.47%, and the Dow Jones Industrial Average fell 1.01%. The 10-year Treasury yield fell 3 basis points to 4.50%. The Bloomberg Dollar Spot Index fell 0.7%. The yen led the major currencies, as the market expects the Bank of Japan to raise rates soon.

Bit returned to 98K, JPMorgan warned

JPMorgan analysts warned that the weakening institutional demand for Bit and ETH futures on the Chicago Mercantile Exchange (CME) is a bearish signal for the cryptocurrency market in the short term.

The total cryptocurrency market capitalization has fallen 15% from the record high of $3.72 trillion on December 17 to around $3.17 trillion, and JPMorgan said in its Wednesday report that this slump has caused Bit and ETH futures on the CME to approach "backwardation," where the futures price is lower than the spot price, similar to the situation in June and July last year.

This is a negative development, indicating that the demand from institutional investors using the regulated CME futures contracts to invest in these two cryptocurrencies is weak.

JPMorgan pointed out that the lack of positive regulatory catalysts and the fact that momentum-driven funds like commodity trading advisors have been reducing their exposure to risky assets further dampens demand, and the cryptocurrency market may continue to face pressure in the short term.