Retail Investors Were Likely Behind The Crypto Market Rally in February, JPMorgan Says
Retail investors likely drove the strong crypto market rally in February, according to a research report by JPMorgan. Bitcoin, the world's largest cryptocurrency, increased by 30% in the last 30 days, while the Coindesk 20 index rose 24%. This revival of retail investment is in anticipation of three main crypto catalysts: the bitcoin halving event, the next major upgrade of the Ethereum network, and the potential approval of spot ether ETFs by the SEC in May. The first two catalysts are largely priced in, with a 50% chance seen for the third. On-chain cumulative bitcoin flows showed larger flows from smaller wallets, indicating increased retail investor involvement. Retail-focused platforms such as the Block, PayPal, and Robinhood saw increased trading activity and investor flows in Q4 2023. The share of AI and meme tokens in the total crypto market also rebounded in February, indicating increased retail activity.
