JPMorgan Says Ongoing Crypto Bear Market Won’t Last Much Longer
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JPMorgan Remains Hopeful of the Crypto Market
The investment bank's strategists, led by Nikolaos Panigirtzoglou, said in a Wednesday note cited by Bloomberg that the downturn of the cryptocurrency market in the past months "is a manifestation of this deleveraging process."
JPMorgan strategists predict that the ongoing bearish cycle may not last long following the growing amount of bailout funds given to companies largely affected by the market dip.
"The current deleveraging cycle may not be very protracted [given] the fact that crypto entities with the stronger balance sheets are currently stepping in to help contain contagion."
According to JPMorgan strategists, venture-capital funding, which is an important source of capital for the crypto industry, has also continued at a healthy pace between May and June. For instance, FTX has been given credit to crypto companies and is also making moves to acquire some firms that are largely affected by the ongoing market crisis.
The crypto market faced a massive crash in February and March following an invasion carried out by Russian forces against Ukraine in addition to the US Federal Reserve's move to handle rising inflation by increasing interest rates.
While crypto companies tried to stay afloat amid these unfortunate events, Terra ecosystem tokens LUNA and UST crashed tremendously, an incident that rocked the entire crypto market.