Crypto Bearish Ending: JPMorgan Strategist
As stated by a product manager at JPMorgan, the current crypto market slump could finish shortly. It was noticed that more robust cryptocurrency firms are entering the market and investing more money.
JPMorgan Economist Is Optimistic Regarding The Future Cryptocurrency Market
A strategist at JPMorgan, Nikolaos Panigirtzoglou, provided his forecast for the cryptocurrency industry on Wednesday. He remarked that a growing number of organizations are stepping in to rescue failing businesses.
Moreover, the last two months have seen an increase in venture capital funding. His analysis was predicated on these factors.
“According to the company’s Net Margin indicator, the period of deleveraging is well underway. As a result, we may see some bullish price action soon,” he added.
It is significant that the majority of crypto companies’ decline began in May. After the Terra ecosystem collapsed, billions of dollars were lost. To satisfy debts, a number of crypto companies were forced to liquidate their assets or dissolve.
Celsius and BlockFi are ideal examples of cryptocurrency lending companies. The investment firm Three Arrows Capital has been ordered into liquidation.
However, according to the JPMorgan consultant, the gloomy market may soon become bullish. Several crypto organizations have intervened to save struggling and bankrupt businesses. He declared that:
“Large crypto businesses with enormous financial resources are currently joining the business. They are rescuing failing businesses. This should assist the market’s recovery.”
The Financing Saves the Day
In addition, Panigirtzoglou mentioned the most recent funding of venture capital firms in the industry. According to JPMorgan, crypto businesses garnered $5 billion in venture capital funding between May and June.
Dove Metrics, a fundraising tracker, estimated that funding for cryptocurrencies has risen to nearly $8.6 billion. This pace is over $3.4 billion greater than the rate in May and June of the previous year.
Moreover, the most recent crypto market forecast should reassure cryptocurrency speculators. Since the impending crypto cold, many of these investors have lost millions.
Due to Glassnode, the current bull run is the worst in the history of cryptocurrency trading. The biggest market capitalisation for cryptocurrencies came in November of last year.
The overall value of the cryptocurrency market exceeded $3 trillion at that time. CoinGecko said that this figure has decreased to approximately $934 billion.
Fortunately, well-known exchanges, such as FTX and Coinbase, continue to grow into new regions. Coinbase obtained operating licenses in Ireland, the United Kingdom, and Switzerland.
In furthermore, there are indications that FTX may acquire the bitcoin lending site BlockFi for more than $25 million. Nevertheless, Zac Prince, the CEO of BlockFi, rejected the reports on his Twitter page.