Global investment bank JPMorgan says cryptocurrency markets are
“looking frothy” as retail investors spill over from the stock market
into cryptocurrencies and non-fungible tokens (NFTs).
Crypto Markets Look Frothy, According to JPMorgan
JPMorgan published a note Wednesday on the stock market and
cryptocurrencies. It explains that retail investors bought stocks at a
record pace over the summer with an estimated net flow into the U.S.
stock market of $13 billion in August after reaching a record high of
almost $16 billion in July.
The JPMorgan analysts asserted that the stock-buying frenzy spilled
over into altcoins and non-fungible tokens (NFTs) in August, and the
surge in NFTs and decentralized finance (defi) activity has boosted the
price of certain cryptocurrencies, such as ethereum, solana, and
cardano.
They wrote:
Cryptocurrency markets [are] looking frothy again.
As Bitcoin.com News reported,
the crypto market gained approximately 83% in value over the last three
months, led by altcoins. The global crypto market cap is currently
$2.28 trillion. Bitcoin’s dominance slipped from 47% on Aug. 1 to 41.39%
Saturday. Ethereum (ETH) currently represents 20.13% of the entire crypto market, followed by cardano (ADA) at 4.11%. Solana (SOL) represents 1.80%.
Solana has become one of the top-performing cryptocurrencies this
year. At the price of $141.04 per coin, SOL is now the seventh-largest
crypto by market capitalization. The coin gained 310.8% during the last month and 3,277.6% year-to-date.
The JPMorgan analysts noted that altcoin trading now represents about
33% of the crypto market, emphasizing that it was a big increase from
the 22% reading in early August. They concluded:
The share of altcoins looks rather elevated by historical
standards and in our opinion it is more likely to be a reflection of
froth and retail investor ‘mania’ rather than a reflection of a
structural uptrend.
source link : https://news.bitcoin.com/jpmorgan-cryptocurrency-markets-looking-frothy/
