Earlier this week investment bank JPMorgan has released investor comments suggesting that crypto markets have swelled again. They claim that market conditions appear to be more bubbly than expected. A note released last Wednesday suggested that retail investors’ appetite for digital assets had skyrocketed alongside traditional stocks.
Retail demand has risen to record highs thanks to historically low interest rates and the Fed’s outlook for the rest of the year. JPMorgan analysts estimated a net flow of $ 13 billion to the US stock market in August alone.
Increased retail demand
The JPMorgan research team claimed to be massive capital inflow he also found his way into cryptocurrencies. It is certainly possible that the frenzy of retail shopping has played a key role in the recovery of crypto markets.
However, the gains of the two largest cryptocurrencies are pale compared to altcoins and tokens, which have gained great popularity. DeFi there are still new uses and NFT reach record levels. According to Tradingview, Solana has increased by 390% in the last month alone, compared to 7,000% year-on-year at the time of writing.
BTC dominance also declining. Other coins, such as Cardano, Ripple and Binance Coin, grew faster. Total share BTC the market fell to 41.31% – from 73.78% at the beginning of the year.
JPMorgan reports that BTC is losing market share
JPMorgan analysts also wrote that altcoin trading represents about 1/3 of the crypto market. It remains unclear whether this figure represented only the volume of the spot market. Nevertheless, it was a substantial increase from 22% in early August.
,, Share altcoins look quite tall according to historical movements. In our opinion, it is more likely to be a reflection of mania and retail investors than a reflection of a structural trend. ”
The main investment bank remains wary of a rapidly developing alternative asset class. However, there are still no indications that the parabolic growth of cryptocurrencies will soon slow.
