Retail Traders Boost Crypto Stock per JP Morgan

Retail Traders Boost Crypto Stock

According to reports from JP Morgan, we could see retail traders boost crypto stock amidst the heavy liquidation. For the ordinary crypto investor, things have taken a turn for the better as the massive liquidations continue throughout exchanges. Analysts from JP Morgan believe that the heightened selling pressure dominating the market is now subsiding. 

Now BTC trades above $22,000, and investors are eager to see whether a correction in price is on the horizon. 

Deleveraging at Its End?

Per the research by JP Morgan, demand for digital assets among retail traders is starting to increase as the severe phase of deleveraging comes to a close. 

Still, figures show that market liquidation is high. However, some believe that the worst is in the past, which could see retail traders boost crypto stock. 

“Backwardation has been in a severe phase since 2018, evident in May and June. However, this phase appears to be over. Since investors began anticipating the Ethereum merger, which starts on September 19, the cryptocurrency markets have recovered.”

The ETH merger, highly anticipated by investors, has been a positive contribution to the sentiment among investors. Moreover, the network continues to see an uptick in activity. 

Increased Demand Among Retail Traders

Will retail traders boost crypto stock? It’s intriguing to see how significantly the futures market and retail sector differ. According to analysts at JP Morgan, the cryptocurrency fund and futures market have yet to experience price recovery. 

However, the average investors are driving increased demand for crypto assets. Since the beginning of July 2022, smaller investors are seeing increases in BTC and ETH values. 

Additionally, the price of BTC has jumped 30% since tapping a low in June. According to some recent reports, BTC now trades around $22,000, which is down about 0.61% from the previous day. 

On Wednesday, July 20, Bitcoin tapped a high of $24,153 before dropping to its current range in the mid $22,000. 

According to top executives at another bank, though, the worst is yet to come. CEO of Goldman Sachs, David Solomon, stated that he believes there is more inflation in the future of the United States. An increase in the inflation rate could be a significant hurdle for prospects of a crypto revival. 

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