In a memo issued last week, global investment giant JPMorgan allegedly warned about crypto markets having limited potential. JPMorgan sees stablecoins percentage of overall crypto market value as an indicator of the possibility of rallies or drops. When stablecoins accounted for about 10% of total crypto market value.
“JP Morgan anticipated that any further rise in crypto markets from here would be more constrained.”
JPMorgan analyst Panigirtzoglou stated that it “pointed to the additional potential for crypto markets.” He stated that the percentage of stablecoins in the overall crypto market value no longer appears excessive. This share is now less than 7%, resuming its downward trend that began in 2020. ” The JPMorgan analyst went on to say:
Panigirtzoglou stated that the prices of bitcoin (BTC) and ether (ETH) rose in early March as a result of financial restrictions imposed by Western countries on Russia following its invasion of Ukraine. His note stated-
“The sanctions have fuelled predictions that cryptocurrencies may be utilised more extensively in the future to evade the traditional banking system as cryptocurrencies are not tied to or rely on any government.”
However, citing the stablecoin share indicator, the JPMorgan analyst cautioned that the crypto market rally may be coming to an end.
JPMorgan forecast in February that the long-term price of bitcoin would reach $150,000. The bank conducted a client poll in January and discovered that the majority of respondents predicted the price of Bitcoin to reach $60,000 or higher this year.
Unlike JPMorgan, some people have stated that they believe the crypto market has a large upside. The CEO of Defiance ETFs stated that she is “totally optimistic about bitcoin” and expects the cryptocurrency’s price to reach $100,000. Furthermore, Mike Novogratz, CEO of Galaxy Digital, listed a variety of optimistic reasons for impacting the cryptocurrency markets last week.
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