Saylor’s solo act: JPMorgan says Strategy is practically the only thing keeping crypto flows alive

Wall Street investment bank JPMorgan (JPM) said the pace of capital flowing into digital assets slowed markedly in the first quarter of 2026, with total inflows estimated at around $11 billion.

That implies an annualized run rate of roughly $44 billion, about one-third of the pace seen in 2025, according to the report published last week.

"Investor flows, either retail or institutional, have been small or even negative YTD with the bulk of the digital asset flow in Q1’26 stemming from Strategy’s (MSTR) bitcoin BTC$71,726.66 purchases and concentrated crypto VC funding," wrote analysts led by Nikolaos Panigirtzoglou.

Crypto markets had a volatile and broadly negative first quarter, with prices and market value retreating sharply amid a risk-off backdrop. Total crypto market capitalization fell roughly 20% over the period, while bitcoin dropped around 23% and ether (ETH) declined more than 30%, marking one of the weakest first-quarter performances in years.

The selloff was driven by macroeconomic and geopolitical pressures, triggering liquidations and a broad pullback in risk assets, with altcoins hit even harder.

Despite the downturn, prices stabilized toward the end of the quarter, with bitcoin consolidating near the $70,000 level as ETF demand improved and some pockets of the market, such as select altcoins and onchain activity, showed resilience.

The bank’s estimate aggregates crypto fund flows, Chicago Mercantile Exchange (CME) futures positioning, venture capital fundraising and corporate treasury activity, including bitcoin BTC$71,726.66 purchases by firms such as Strategy.

The analysts said investor-driven flows were notably weak. Positioning in bitcoin and ether CME futures softened versus 2024 and 2025, suggesting institutional demand may have turned slightly negative year-to-date. Spot bitcoin and ether exchange-traded funds (ETFs) also saw net outflows during the quarter, concentrated in January, before a modest rebound in bitcoin ETF inflows in March.

The bank's analysts attributed most of the quarter’s inflows to corporate treasury activity and venture funding. Strategy remained a dominant buyer, funding bitcoin purchases largely through equity issuance, while signaling continued reliance on stock and preferred issuance to finance accumulation. Other corporate holders were more defensive, with some selling bitcoin to fund buybacks.

Bitcoin miners were net sellers during the quarter, the report said, as firms sold holdings or used them as collateral to shore up liquidity, fund capital expenditures or manage liabilities. The analysts characterized the selling as driven by tighter financing conditions and balance sheet discipline rather than distress.

Crypto venture capital was a relative bright spot. Funding tracked an annualized pace above the prior two years, though activity was increasingly concentrated in fewer, larger deals led by established firms. Capital continued to rotate toward infrastructure, stablecoins, payments and tokenization, with less interest in gaming, non-fungible tokens (NFTs) and exchange-related projects, the report added.

Read more: Bitcoin holds ground as gold, silver slide on ETF outflows and liquidity strains: JPMorgan