Senior analyst Nikolaos Panigirtzoglou noted that retail investor interest in cryptocurrencies is once again reviving. This was one of the reasons for the recent growth of Bitcoin, Ethereum and other popular cryptocurrencies. Despite the recent emergence of spot Bitcoin exchange-traded funds (ETFs) in the United States, activity from retail cryptocurrency investors with relatively small amounts has far outpaced cash flows from large companies, Panigirtzoglou explained.
“Increased retail investor activity in February reflects the onset of three major catalysts for crypto market growth in the coming months: a reduction in Bitcoin miner rewards, a major upgrade to the Ethereum network – Dencun – and the possible approval of spot Ethereum ETFs in May,” JPMorgan analysts said.
They explained that the first two catalysts are largely already priced in, so they are unlikely to have a significant impact on the dynamics of the crypto market. As for the approval of exchange-traded funds for ether in the United States, the probability of this is only 50%, suggested Panigirtzoglou. Therefore, despite the upcoming positive events, analysts maintain a cautious position on the cryptocurrency market.
According to a recent JPMorgan survey, institutional investors have become less confident in the potential of blockchain, dropping to 7% in 2024.. Late last year, a team of JPMorgan analysts suggested that Ethereum would outperform Bitcoin in 2024.