Things seem to be taking a turn for the better for ordinary cryptocurrency investors as massive liquidations continue across exchanges. Analysts believe that the extreme selling pressure that dominated the market for the past few months has now subsided.
Bitcoin is trading above $22,000, and participants are keen to see whether or not a correction will occur in the price now.
JP Morgan’s research shows that the demand for crypto assets among retail traders is only beginning to increase, and the severe deleveraging phase seems to be over.
Although figures show that market liquidation is still rather substantial, one could make a safe bet that the worst has blown past.
“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 highly anticipated Ethereum merger has undoubtedly contributed to the positive market sentiment, and the network has seen an uptick in activity.
It’s interesting how the futures market and the retail sector differ significantly. JP Morgan’s research shows that the cryptocurrency fund and futures markets have not yet experienced an asset price recovery.
Ordinary investors are driving the demand for cryptocurrencies. Since the end of June, smaller investors have noticed an increase in their ether or Bitcoin balances.
On the other hand, the price of Bitcoin has increased by over 30% since its lows last month. According to recent reports, Bitcoin is currently trading at $22,671, down 0.61 % from the previous day. BTC reached a high of $24,153 on Wednesday before falling to its current levels, which are in the mid $22,000 range.
The worst on the macroeconomic front, though, is still to come, according to a top executive of another Wall Street bank.
david solomon
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