JPMorgan Says Cryptocurrency Markets Are "Looking Frothy"
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.
What do you think about the comments by JPMorgan’s analysts? Let us know in the comments section below. From $250 Billion to $2.35 Trillion: A Look at the Top Ten Crypto Market Cap Shifts Over 2 Years MARKETS AND PRICES | 23 hours ago Crypto Economy Gains 83% in Value Over Last 3 Months, Myriad of Lesser-Known Coins Spike MARKETS AND PRICES | 2 days ago Tags in this story cryptocurrency market, frothy crypto market, frothy market, jpmorgan, jpmorgan analysts, jpmorgan crypto market, jpmorgan prediction, market outlook, market prediction
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