Crypto Market Lacks Near-Term Major Catalysts

JPMorgan (JPM) stated in its research report published today that the crypto market has fallen by 24% from the peak levels recorded in March to $2.02 trillion. The bank emphasized that the only chance for the market to develop is a significant catalyst.

“Overall, we continue to see the crypto ecosystem lacking major catalysts. Therefore, we expect crypto token and asset prices to gradually become more sensitive to macro factors,” analysts led by Kenneth Worthington wrote in the report.

Trading volumes increased in August despite the overall market decline. The report noted that total average daily volumes (ADV) increased by nearly 8 percent, while bitcoin (BTC) and ether (ETH) ADVs increased by more than 10 percent on a monthly basis. The price of bitcoin, the world’s largest cryptocurrency, fell by 8.7 percent last month, according to CoinDesk Indices data.

The bank reported that stablecoins displayed a stance contrary to the market average, as their market values ​​and volumes increased compared to July.

JPMorgan added that spot ether and bitcoin exchange-traded fund (ETF) flows have remained “uninspiring,” with many viewing ETH ETFs as disappointing when comparing them to bitcoin ETFs.