-
The pace of capital entering the digital asset market has hit a significant speed bump.
According to a new report from Wall Street giant JPMorgan Chase, capital flows into cryptocurrency slowed dramatically during the first quarter of 2026.
Total inflows for the period reached approximately $11 billion, a rate that is roughly one-third of the pace recorded in 2025.
Analysts led by Nikolaos Panigirtzoglou noted that the market has become increasingly reliant on a very small group of buyers.
Strategy reports massive Q1 Bitcoin buying
Strategy, formerly known as MicroStrategy, continues to be the most aggressive buyer in the market. A significant portion of this activity occurred in mid-March, when the firm acquired 22,337 coins in just one week.
The buying spree continued into early April. Between April 1 and April 5, Strategy acquired an additional 4,871 Bitcoin for approximately $329.9 million, at an average price of $67,718 per coin.
This brings the company’s total holdings to 766,970 Bitcoin. In total, the firm has spent $58.02 billion to amass its collection, representing an average purchase price of $75,644 per coin.
The company’s Q1 report revealed an unrealized loss of $14.46 billion on its digital assets. To help manage these figures, the firm reported a deferred tax benefit of $2.42 billion and plans for a $0.5 billion valuation allowance.
Despite these heavy paper losses, investors remain interested in the firm's stock. At the time of reporting, Strategy shares were trading at $128.30, up 3.70% during the day.
Volatile quarter for crypto prices
The first three months of the year were difficult for investors as the total crypto market value fell by about 20%.
Bitcoin experienced a 23% drop, while Ethereum (ETH) declined by more than 30%, marking one of the weakest opening quarters in recent history.
Experts attribute this slump to a combination of geopolitical tensions and broader economic pressures that forced a pullback from risky assets.
While prices eventually stabilized toward the end of March with Bitcoin finding support near the $70,000 level, institutional demand through futures and exchange-traded funds (ETFs) remained soft.
Spot Bitcoin and Ethereum ETFs saw net outflows amounting to $1.61 billion and $353.20 million as per SoSoValue, particularly in January, before a minor recovery in Bitcoin interest arrived in March.
Trending on TheStreet Roundtable: Corporate strategy versus defensive selling
Michael Saylor’s firm, Strategy, remained the market’s most dominant buyer. The company funded its Bitcoin purchases primarily by issuing new stock.
In contrast, other corporate holders took a more defensive stance, with some choosing to sell their holdings to fund stock buybacks.
Bitcoin miners also acted as net sellers this quarter. Rather than selling out of panic, these firms used their digital assets to improve liquidity, cover expenses, or manage debt during a period of tighter financing conditions.
Bright spots in venture capital
Despite the quiet trading environment, venture capital remained a positive area for the industry.
While the number of deals decreased, the size of individual investments grew as capital flowed into established firms.
Investors are currently shifting their focus away from gaming, NFTs, and exchanges.
Instead, money is moving toward practical infrastructure, including stablecoins, payment systems, and tokenization projects.
According to JPMorgan, this rotation suggests a growing interest in the underlying utility of blockchain technology even while the broader market remains muted.
This article has been published in thestreet.com via Yahoo News.
JPMorgan identifies the lone buyer saving crypto flows
The pace of capital entering the digital asset market has hit a significant speed bump. According to a new report from Wall Street giant JPMorgan Chase, capital flows into cryptocurrency slowed dramatically during the first quarter of 2026. Total inflows for the period reached ...
finance.yahoo.com
