According to a recent report by the largest bank in the US, JPMorgan Chase, the cryptocurrency market closed last month with a total market value of $2.02 trillion, marking a 24% decline compared to its peak in March. Analysts at the banking giant highlighted that the market is now waiting for retail investors.
Retail Investors Expected for Next Market Surge
Kenneth Worthington and his team of analysts at JPMorgan Chase emphasized the current struggles of the cryptocurrency market, pointing out the lack of major catalysts and noting that the market eagerly awaits advanced retail participation to move to the next phase of the surge.
Despite the decline in the market value of cryptocurrencies, the report noted a significant increase in trading volumes in August. The total average daily volume (ADV) increased by approximately 8%, while the ADVs of Bitcoin (BTC) and Ethereum (ETH) increased by more than 10% compared to the previous month. However, the report emphasized that due to the lack of significant developments for the market, the prices of major cryptocurrencies remained vulnerable to broader macroeconomic factors.
JPMorgan Chase analysts added that the price of Bitcoin, the largest cryptocurrency by market value, fell by 8.7% last month. In contrast to the overall downward trend in the market, stablecoins stood out as an exception, with both their market values and trading volumes increasing compared to July.
ETFs Underperforming Expectations
JPMorgan also reported lackluster performance in spot exchange-traded funds (ETFs) for both Bitcoin and Ethereum. Particularly, the spot Ethereum ETFs, which were expected to mirror the initial success of the spot Bitcoin ETFs launched at the beginning of the year, have significantly underperformed since their introduction. So far, the overall fund inflow into spot Ethereum ETFs has been tepid.
While the market awaits the next significant catalyst, JPMorgan Chase analysts advised caution. They added that in the absence of developments that could positively impact the market, cryptocurrencies are likely to be increasingly affected by broader economic conditions.
