JPMorgan Sees Retail Traders Jump Back Into Crypto Markets in February

Mom-and-pop investors piling back into crypto markets after a January pause seem to be behind popular cryptocurrencies — including Bitcoin and Ether — rallying to multi-year highs, according to JPMorgan Chase & Co. strategists.

On-chain Bitcoin flows from small wallets — used as a proxy for retail traders — have far out paced those of institutional investors, after adjusting for inflows into new spot Bitcoin exchange-traded funds, the team led by Nikolaos Panigirtzoglou said. With the largest digital asset on track for six months of gains investors are likely looking ahead to several critical developments in the space.