Here's what the key players say about the "green week" of the crypto market

[dartwalker]

Bitcoin has gained more than 7% in the last seven days, Ethereum has jumped more than 23%, and the global capitalization of the cryptocurrency market has regained $1 trillion.
Despite a slight pullback on Monday, both cryptocurrencies and the market as a whole had an upward trend last week.



Here's what JPMorgan and cryptocurrency market participants said about this week's price action:
The rebound is facilitated by the approach of the Ethereum merger

JPMorgan Chase analysts partially explained the rebound by announcing the preliminary date of the Ethereum merger - September 19. The merger refers to the transition of the Ethereum blockchain from a proof-of-work mechanism to a proof-of-stake consensus mechanism.

JPMorgan analysts said that this announcement "lifted the mood among crypto investors, pushing Ethereum and other cryptocurrencies."

According to the note, "the extreme backwardation phase observed in May and June, the most extreme since 2018, seems to be over." This is evidenced by the return to contango - when the price of futures contracts is higher than the current spot price - in bitcoin and ether futures, which indicates a significant improvement in demand.

However, the bank's analysts noted that the same demand was not observed in crypto funds or the futures sector, suggesting that the improvement is likely to be driven by retail investors.
Market makers have similar opinions

QCP Capital, a Singapore-based crypto trading company, shared a similar opinion in its weekly market review on Thursday. The report says that Ethereum was the clear leader during this "mini bull run", which was facilitated by new specifics regarding the merger.

The firm also stated that positive macroeconomic factors have played a role in the growth of cryptocurrencies across most asset classes. After a record June inflation rate of 9.1% in July, the market estimated the possibility of raising the Fed's interest rate by 100 basis points.

QCP expects a 75 basis point increase and another boost for the market, as a 100 basis point increase will be completely excluded from the price. In addition, inflation has shown signs of reaching a peak, and this will mean more positive for the market.

The report concluded that, despite the fact that the markets are currently optimistic, the possibility of a further credit crisis remains.

Chicago-based firm Cumberland echoed this on Thursday, saying it had noticed an increase in over-the-counter trading flows, with institutional buyers opening long positions on Ethereum before the merger.

Head of Cumberland Sales DepartmentJonah Van Burgh said that this action reflects the incentive structure of each volatile asset, noting that "it is always easier to buy a rebound than to catch a falling knife."

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