JPMorgan Claims Better Crypto Days Might be Approaching
- JPMorgan said that the massive deleveraging and the ongoing crypto crisis have possibly hit their highest. Thus, there might be a chance for a market recovery soon.
JPMorgan has predicted an impressive market recovery for the crypto industry according to a report from BNN Bloomberg.
The massive plunge in the value of the crypto market has not only affected retail investors, but institutional investors have also been greatly impacted. Reports have revealed several crypto platforms that have been on the verge of winding up or being acquired due to uncontrollable leverage issues.
JPMorgan Optimistic With Crypto Market
However, JPMorgan may have restored the hopes of many, as it expresses a positive opinion on what the next moments of the long-distressing crypto market may look like. The New York-based bank unveiled that the massive deleveraging and the ongoing crypto crisis have possibly hit their highest. Thus, there might be a chance for a market recovery soon.
A strategist from the investment bank pinpointed some facts on the impact of the market crisis on crypto firms, especially the large ones. The strategist noted that the failure of some of the largest crypto companies that became big victims and casualties of the crash is not exactly a thing to be surprised about, stating that entities using higher leverage are the most vulnerable to such situations.
Meanwhile, speaking on the reason behind the bank’s prediction of a possible market recovery, Nikolaos Panigirtzoglou, JP Morgan strategist noted that firms are increasingly willing to help vulnerable companies. Also, a healthy and impressive pace of venture capital funding in the last two months has inspired the forecast.
More precisely, he explained that the emergence of stronger crypto companies with more robust and healthy balance sheets intervening in the scene to help contain the contagion, and the continued healthy pace of venture capital (VC) funding are key indicators that the crypto crisis and deleveraging may be coming to an end soon.
Key Notes
According to statistics from Coingecko, the global cryptocurrency market cap as of the time of writing is $1 Trillion, marking up to a 5 percent uptrend in the last 24 hours.
Analysis reveals that the crypto market has been seeing a decent uptrend in the last 2 days. Could this mean that JP Morgan’s prediction of the fate of the deleveraging market was right? Well, such curiosities may get clarified in the next few weeks.
With fingers crossed, crypto investors are watching out for what the market has for them in the next few weeks as analysis shows that more large market players are buying BTC from exchanges and storing them in cold wallets.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
