JPMorgan reports rebound in retail demand for cryptocurrencies

The improvement in investor sentiment and rising interest in Ethereum ahead of the transition to PoS spurred a rebound in the cryptocurrency market, according to JPMorgan analysts, as reported by CoinDesk.

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Analysts noted signs of the end of the «intense phase» of the wave of leveraged long-position liquidations.

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In confirmation, they pointed to the narrowing spread between stETH and ETH.

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«Maximum backwardation since 2018 in May–June, бэквордация appears to be behind us», — according to the bank’s statement.

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Analysts drew attention to increased activity on the Ethereum network. They linked this to the The Merge upgrade scheduled for September 19.

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Experts emphasised that the market recovery is not accompanied by inflows into crypto funds. In their view, the growth driver is retail investor activity.

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«С конца июня на небольших кошельках наблюдается рост балансов Ethereum и биткоина за счет более крупных держателей», — подчеркнули специалисты.

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Earlier, JPMorgan analysts noted a decline in bitcoin’s production cost to around $13,000, which could be a negative factor for the pricing of digital gold.

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Back in July, bank strategists suggested that the worst for the crypto market was behind us.

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