JPMorgan Says Ongoing Crypto Bear Market Will Soon Come to an End

JPMorgan Says Ongoing Crypto Bear Market Will Soon Come to an End

Crypto Bear Market May Not Take Long.

Financial strategists from the investment banking company JPMorgan Chase & Co are confident that the ongoing bear market has reached an advanced stage and it will soon come to an end.

Bloomberg cited a note written by JPMorgan strategists, including Nikolaos Panigirtzoglou, stating that the downturn of the cryptocurrency market in the past months is a manifestation of a deleveraging process. 

JPMorgan: Crypto Bailouts to Rescue the Situation

The good news is that JPMorgan strategists predict that the ongoing crypto deleveraging 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 since crypto entities with stronger balance sheets are currently stepping in to help contain the contagion,” the strategist said. 

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 cryptocurrency companies and the exchange is also making moves to acquire some firms that are largely affected by the ongoing market crisis. 

Crypto Market Woes

It is no longer news that cryptocurrency-related businesses have been largely affected by a series of events, forcing some companies to take very stringent actions such as staff layoffs and also liquidation. 

The crypto market was dealt a heavy blow in February and March following an invasion carried out by Russian forces against Ukraine and the Federal Reserve’s move to curtail 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. 

Terra’s collapse in May resulted in the failure of Three Arrow Capital (3AC), which had a significant investment in Terra and is now being faced with liquidation. 

Popular crypto lending platform Celsius Network was forced to halt users’ assets’ withdrawals, swaps, and transfers following the crypto market collapse. 

Furthermore, crypto companies like Coinbase, Crypto.com, and Gemini were forced to slash their number of employees to cope with the downturn in the market. 

JPMorgan strategists are of the opinion that the cryptocurrency market has gone beyond a good portion of the current bear market troubles, adding that it is only a matter of time before crypto prices will rally again. 

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Original Source : thecryptobasic.com

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