JPMorgan Chase & Co. has warned that any upside for crypto markets from here would likely be more limited. Basing their prediction on the relationship between stablecoins and the rest of the crypto market, the bank’s analyst explained that stablecoins’ share of the total crypto market cap “no longer looks excessive.”
JPMorgan’s Crypto Outlook
Global investment bank JPMorgan reportedly warned about cryptocurrency markets having limited upside in a note published last week.
JPMorgan sees stablecoins’ share of the total cryptocurrency market value as an indicator of potential for rallies or declines. Previously, when stablecoins accounted for almost 10% of the total crypto market cap, JPMorgan analyst Panigirtzoglou said it “pointed to further upside for crypto markets.”
In the note issued last week, he explained: “The share of stablecoins in total crypto market cap no longer looks excessive … This share currently stands below 7% which brings it back to its trend since 2020.” The JPMorgan analyst continued:
As a result we believe that any further upside for crypto markets from here would likely be more limited.
Panigirtzoglou pointed out that the price of bitcoin (BTC) and ether (ETH) rallied in early March following financial sanctions imposed on Russia by Western countries after its invasion of Ukraine.
The note describes: “These sanctions had raised expectations that cryptocurrencies will be used more extensively in the future to circumvent the traditional banking system given cryptocurrencies are not attached or depend on any government.”
However, citing the stablecoin share indicator, the JPMorgan analyst warned that the rallies seen in crypto markets may be coming to an end.
In February, JPMorgan predicted that the long-term price of bitcoin would reach $150,000. In January, the bank conducted a client survey and found that the majority of respondents expected the price of BTC to reach $60,000 or more this year.
Unlike JPMorgan, several people have said they see a significant upside to the crypto market. The CEO of Defiance ETFs said she remains “completely bullish on bitcoin,” expecting the price of the cryptocurrency to reach $100,000. In addition, Mike Novogratz, the CEO of Galaxy Digital, outlined a number of bullish factors affecting crypto markets last week.
What do you think about JPMorgan’s assessment of the crypto market? Let us know in the comments section below.
from Bitcoin News https://ift.tt/KD9XO5r
https://ift.tt/coTfVNZ
0 Comments