By Shelly Melancon (Switzerland)
According to an analyst at JPMorgan, the ongoing market decline might be ending soon. It noted that stronger cryptocurrency entities are entering the market and investing more capital.
JPMorgan Strategist Optimistic About The Future Crypto Market
On Wednesday, Nikolaos Panigirtzoglou, a strategist at JPMorgan, gave his prediction of the crypto market. He noted that more firms are moving to bail out struggling companies.
Also, reports recorded more venture capital funding in the last two months. These were the basis for his analysis.
“According to the company’s Net Leverage metric, the deleveraging period is well advanced. Hence, we may see some bullish movements soon,” he added.
It is noteworthy that most crypto firms’ fall began in May. This was after the Terra ecosystem fell and wiped billions of dollars. Several crypto firms had to sell their assets or go under liquidation to repay debts.
Cryptocurrency lending firms Celsius and BlockFi are perfect examples. The investment company, Three Arrows Capital, has been ordered to undergo liquidation.
However, the JPMorgan analyst argues that the bearish market might be rounding up soon. Several crypto firms have stepped in to save a struggling and insolvent companies. He stated that:
Also read:“Presently, big crypto firms with huge balance sheets are entering the market. They are bailing out struggling firms. This should help the market to recuperate.”
Venture Capital Firms Come To The Rescue
Furthermore, Panigirtzoglou also cited the latest funding of venture capital firms in the sector. As stated by JPMorgan, crypto firms received funding worth $5 billion from VCs in May and June.
Also, Dove Metrics, a fundraising tracker, estimated that crypto funding has increased to over $8.6 billion. This rate is higher than the rate in May and June last year by over $3.4 billion.
Besides, the latest crypto market prediction should put the mind of cryptocurrency investors at rest. Many of these investors have lost millions since the ongoing crypto winter.
According to Glassnode, this is the worst bearish market in the era of cryptocurrency trading. The highest crypto market capitalization occurred last year in November.
As of then, the total market cap for the crypto market was over $3 trillion. Unfortunately, CoinGecko stated that this has dropped to about $934 billion.
Fortunately, popular exchanges, FTX and Coinbase, continue to expand their operations to other regions. Coinbase was licensed to operate in Ireland, the United Kingdom, and Switzerland.
Additionally, rumors are circulating that FTX may buy the cryptocurrency lending platform, BlockFi for over $25 million. However, the CEO of BlockFi, Zac Prince, denied the rumors on his Twitter page.
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