Wednesday, November 30, 2022
HomeCrypto NewsMarketJPMorgan Says Ongoing Crypto Bear Market Will Soon Come to an End

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

- Advertisement -
Follow-Us-On-Google-News

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. 

- Advertisement -
Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

- Advertisment -

Recent News & Articles

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.