The post Crypto Market Drops 24% as JPMorgan Awaits New Catalyst for Growth appeared on BitcoinEthereumNews.com.

Crypto market experienced a significant downturn, with its total market capitalization plummeting by 24%, falling to $2.02 trillion at the end of August 2024. This marks a sharp decline from its March peak of $2.67 trillion, as reported by CoinDesk. JPMorgan analysts attribute the drop to a lack of major catalysts to drive the market forward, and they anticipate that crypto prices will become increasingly sensitive to macroeconomic factors in the months ahead. While the 24% decline is cause for concern, trading volumes for major cryptocurrencies such as Bitcoin and Ethereum have actually risen, providing a complex picture of the market. In August, Bitcoin and Ether saw over a 10% month-on-month increase in trading volumes, indicating sustained interest among traders despite the overall market contraction. However, both Bitcoin and Ethereum spot exchange-traded funds (ETFs) saw disappointing fund flows during the same period, signaling hesitation among institutional investors. Why Did the Crypto Market Drop? JPMorgan analysts point to several key factors contributing to the recent drop in the crypto market. One of the most prominent reasons is the absence of new catalysts that could push the market higher. Throughout 2024, the cryptocurrency market has been marked by stagnation, as the anticipated approval of spot Bitcoin ETFs failed to materialize and regulatory uncertainty continued to weigh on investor sentiment. Additionally, macroeconomic factors such as rising interest rates, inflationary pressures, and concerns over a potential global economic slowdown have created headwinds for the market. These external economic conditions have made investors more risk-averse, prompting them to pull back from highly speculative assets like cryptocurrencies. Focus on Macroeconomic Sensitivity JPMorgan’s analysts emphasize that as the cryptocurrency market matures, it is becoming more sensitive to broader macroeconomic factors. This shift is particularly important as global markets grapple with issues such as inflation and central bank…

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Filed under: News - @ September 6, 2024 6:27 pm