Even as huge liquidations continue across exchanges, things just appear to be starting to ease for retail crypto investors. Market analysts opine that the intense selling pressure experienced over the past few months is all but over now. Meanwhile, it remains to be seen if Bitcoin price would correct in near future as it trades above $22,000.
Is It The End Of Deleveraging In Crypto?
According to a JP Morgan report, the demand for crypto assets among retail traders is just starting to improve. The intense phase of deleveraging appears to be over, the report said. However, data indicates that there still is reasonably high liquidation in the market. Reiterating the recent relief from bearish trends, the big bank said the worst phase is already behind us.
“The extreme phase of backwardation seen in May and June, the most extreme since 2018, appears to be behind us. Crypto markets have bounced back in recent weeks as investors anticipate the Ethereum merge that commences on September 19.”
Also, the much anticipated Ethereum merge brought about a rise in investor mood. The Ethereum network activity has increased in the recent times.
Retail Crypto Investors Lead The Recovery Charge
Interestingly, there is a clear difference in futures market and the retail space. The JP Morgan report claims recovery in asset prices is not seen in the crypto fund or futures space. This clearly indicates that demand is driven by retail investors. “Smaller wallets have seen an increase in ether or bitcoin balances since the end of June at the expense of larger holders.”
Trending Stories
Meanwhile, Bitcoin price is up around 30% since last month’s lows. As of writing, Bitcoin is trading at $22,671, down 0.61% in the last 24 hours, according to CoinMarketCap. On Wednesday, BTC went to a high of as much as $24,153 before dropping to current levels of mid $22,000 range.
Ecosystem
Research
News Network
About