Demand among retail investors in the crypto market is improving, and the "intense phase" of deleveraging appears to be over, JPMorgan Chase & Co. (JPM) said in a report on Thursday.
- "The extreme phase of backwardation seen in May and June, the most extreme since 2018, appears to be behind us," the bank said.
- Ethereum network activity has increased alongside an uptick in investor sentiment, JPMorgan said.
- Bitcoin (BTC) and ethereum (ETH) are up 30.82% and 72.86%, respectively, since diving to lows of $17,600 and $876 in June.
- The recovery in asset prices is not seen in the crypto fund or futures space, indicating that demand is driven by retail investors, JPMorgan said, before adding that "smaller wallets have seen an increase in ether or bitcoin balances since the end of June at the expense of larger holders."
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