Improvement in investor sentiment and growing interest in Ethereum in anticipation of the transition to PoS provoked a recovery in the cryptocurrency market. JPMorgan analysts came to this conclusion, writes CoinDesk.
Experts noted signs of the completion of the “intensive phase” of the wave of liquidations of leverage on long positions.
In confirmation, they pointed to a reduction in the spread between stETH and ETH.
“Maximum since 2018 backwardation in May-June seems to be over ,” the bank said in a statement.
Analysts drew attention to the increased activity in the Ethereum network. They linked it to The Merge update scheduled for September 19th.
Experts stressed that an influx of funds does not accompany the market recovery into crypto funds. In their opinion, the growth driver is the activity of retail investors.
“Since the end of June, small wallets have seen an increase in Ethereum and Bitcoin balances due to larger holders” ,” the experts emphasized.
Formerly JP Morgan analysts noted a decrease in the cost of mining bitcoin to ~ $ 13,000, which could become a negative factor for digital gold pricing.