One of the largest investment banks, JPMorgan, has released new investor notes. In them, he noted that the crypto markets are again beginning to resemble an economic bubble.
Bitcoin and Ethereum Recover After June Shocks
According to the records of the JPMorgan team, this state of the digital asset market was the result of a sharp increase in demand for cryptocurrencies from retail investors. In turn, the growth in demand was driven by historically low interest rates, as well as favorable forecasts by the US Federal Reserve System (FRS) for the rest of this year. (Also Read: Ripple’s David Schwartz comments on Elon Musk’s tweet about Starlink and Afghanistan)
JPMorgan analysts report that net capital inflows to the US stock market in August were $ 13 million, which is a huge amount in itself. And in July, it even reached $ 16 million. Of course, such an inflow of capital did not bypass the virtual asset market, because it is largely thanks to it that the popularity of cryptocurrency markets increased at the end of summer. (Must Read: Doge Price Prediction: Elon Musk praised the success of Dogecoin developers)
As we all remember, in May, cryptocurrencies such as Bitcoin and Ethereum reached their highs, after which they fell sharply by more than 50% in early summer. However, at the end of July, they began to recover. This is reflected in the six-month Bitcoin and Ethereum growth chart presented by Tradingview.com
JPMorgan Says Bitcoin Continues To Lose Its Dominance And Altcoins Rise Rapidly
But the success of the leading cryptocurrencies does not even come close with altcoins and non-fungible tokens (NFT), as their popularity is growing at a tremendous rate. For example, Solana has already set several new records, and its shares are up 70 times since the beginning of the year.
At the same time, the dominance of the first cryptocurrency fell sharply, due to the growth of Ethereum (ETH) , Cardano (ADA) , Ripple (XRP) and Binance Coin (BNB) . At the moment, the total share of BTC in the market capitalization of cryptocurrencies is just over 40%, while at the beginning of 2021 it was almost 75%. This is evidenced by the Bitcoin dominance chart from Traidingview.com.
Research group JPMorgan reports that altcoin trading currently accounts for about a third of the entire cryptocurrency market, up 22% from a month ago. However, JPMorgan analysts believe that this is not a reflection of a new trend gradually gaining popularity, but an economic bubble. (Must Read: Solana (SOL) Price Prediction: Why it could reach $ 350, thus demonstrating threefold growth)
But it’s worth noting that despite the fears of investment bank JPMorgan about the digital asset market, there are currently no signs that the rapid growth of cryptocurrencies could slow down anytime soon.
Bitcoin price prediction for September 2021.
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BTC to USD predictions for October 2021.
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Bitcoin price prediction for November 2021.
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BTC to USD predictions for December 2021.
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Bitcoin price prediction for January 2022.
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