Cryptos rebound; Bitcoin recovers $26,200 thanks to JP Morgan

The cryptocurrency market rebounds. Bitcoin (BTC) rallies about 2% in the last 24 hours and reconquers $26,000, while Ethereum (ETH) rises 0.6% and climbs above $1,650.

Market analysts believe that the main driver of market prices, which have taken Bitcoin to $26,200 for the first time since last August 31, has been JP Morgan. Yesterday, on Thursday, 'Bloomberg' reported that the New York bank would be developing a blockchain-based payment and settlement system that, according to the publication's sources, would bring notable benefits to the firm led by Jamie Dimon. It should be noted that the project is in its initial stages, would be based on the bank's Onyx blockchain and that the consulting firm Oliver Wyman has been hired to work on a prototype.

The rise of digital assets after this news is evidence of the low mood of the market. This lack of optimism is also evidenced by the data, since, according to CCData, spot trading of cryptocurrencies is at its lowest level since March 2019. According to the analyst firm, spot trading volume on centralized exchanges fell 7.78% to $475 billion in August, while derivatives volume fell more than 12% to $1.62 trillion, the second lowest since 2021.

While the market had hoped that Grayscale's court victory over the Securities and Exchange Commission (SEC) would give digital assets a boost, the regulator's decision to extend the deadline to rule on spot Bitcoin ETFs proposed by BlackRock and a dozen other companies caused cryptos to look gloomy again.

"The low spot trading volume and the fluctuations in the open interest data suggest that the market is currently driven by speculation," CCData stated.

Other experts, such as Samer Hasn, market analyst at XS.com, believe the market is waiting for the Federal Reserve (Fed) to make a move on September 20 due to its lack of appetite for risk. At the moment, CME's FedWatch tool calculates a 93% probability that the central bank will pause its rate hike cycle. In recent hours, James Bullard, former president of the St. Louis Fed, has warned the market of the high probability that the Fed will raise interest rates again at its meeting in September.

The market is also talking about the FTX case in this last session of the week. Ryan Salame, a former director of the bankrupt cryptocurrency exchange, pleaded guilty to two criminal charges of conspiracy to make illegal contributions and defraud the Federal Election Commission and conspiracy to operate an unlicensed money transfer business.

In other altcoins news, theres been an increase, from 0.5% to 0.7%, in Ripple (XRP), Cardano (ADA) and Dogecoin (DOGE). Solanna (SOL) rises the most, increasing 1.7%.