In a note published last Wednesday, global investment bank JPMorgan warned that cryptocurrency markets have limited upside.JPMorgan views stab
In a note published last Wednesday, global investment bank JPMorgan warned that cryptocurrency markets have limited upside.
JPMorgan views stablecoins’ percentage of total cryptocurrency market value to be an indicator of potential rallies or falls. Panigirtzoglou, JPMorgan analyst, stated that stablecoins represented almost 10% of total crypto market value.
He explained that the share of stablecoins within total crypto market capital does not seem excessive in his note last week. The current share is below 7%, which puts it back in line with its trend since 2020. According to JPMorgan’s analyst,
We believe there is less upside to crypto markets.
Panigirtzoglou noted that bitcoin ( Bitcoin) as well as ether ( Ethereum) prices rose in March after financial sanctions were imposed by Western countries on Russia following its invasion of Ukraine.
The note states: “These sanctions had raised hopes that cryptocurrencies would be used more extensively in future to circumvent traditional banking system because cryptocurrencies aren’t attached or dependent on any government.”
The JPMorgan analyst cited the stablecoin share indicator to warn that crypto market rallies may be ending.
JPMorgan forecast in February that bitcoin’s long-term value would be $150,000 The bank conducted a survey of clients in January and found that most respondents expected the Bitcoin price to reach $60,000 by the end of the year.
Many people believe there is a significant upside to crypto markets, unlike JPMorgan. Defiance ETFs CEO, Defiance ETFs, stated that she is still’totally bullish on Bitcoin and expects the price to reach $100,000. Mike Novogratz (CEO of Galaxy Digital) also spoke out about the bullish factors that are affecting crypto markets.