JPMorgan Chase & Co. suggested in a recent research note that retail investors may be the primary force behind the significant gains seen in the cryptocurrency market in February. Analysts, led by Nikolaos Panigirtzoglou, pointed to three key upcoming events driving retail FOMO: the Bitcoin halving event, the Ethereum upgrade, and the SEC's decision on the Ethereum spot ETF application. While the first two events are already priced in, the likelihood of the SEC's decision is uncertain, with only a 50% chance of approval.
The report highlighted a surge in retail participation, noting increased Bitcoin flow on the chain, particularly from smaller wallets. This trend aligns with heightened activity on retail-focused platforms like Square (SQ), PayPal (PYPL), Robinhood (HOOD), and Coinbase (COIN) in the fourth quarter of 2023. These platforms experienced increased trading activity and user traffic, indicating growing interest and involvement from retail investors.
