1255 GMT - This week's surge in cryptocurrencies follows a collapse in trading volumes last month, J.P. Morgan analysts write. Crypto tokens are jumping on incremental improvement in the outlook for the industry's regulatory outlook, they write. Though the crypto-friendly Clarity Act remains stalled in the Senate, investors are more optimistic following comments from President Trump and positive action from the SEC and CFTC, they say. The improved sentiment comes after trading volumes across the crypto ecosystem fell by more than 30% through July compared to June, down more than 50% on year. Volumes are on track to deteriorate through August, the analysts say, besides a one-day spike following a White House meeting of crypto executives Wednesday. Bitcoin jumps 6% to $77,369.29, while Ethereum gains 2.9% to $2,392.26.