In a note Monday, JPMorgan said crypto prices may have “found a bottom” in recent weeks. Meanwhile, Bitcoin rose 36 percent from its mid-June low. The largest altcoin Ethereum (ETH) is up 102 percent in the same time frame. “We think the real catalyst is Ethereum Merge and positive data on it that shows it’s viable in 2022,” JPMorgan said. said. Here are the details…
JPMorgan shared their prospects for the Bitcoin and altcoin market: Ground found!
In a note on Monday, JPMorgan said that after Bitcoin fell as much as 75 percent from its peak, crypto markets appeared to have “found some ground.” According to the data, Bitcoin and ETH are up 36 percent and 102 percent, respectively, from their mid-June lows. The total market cap of cryptocurrencies has regained the crucial $1 trillion level.
Analysts at JPMorgan said there are two reasons that have increased the recent strength in the cryptocurrency market. JPMorgan referred to the stablecoin boom that led to a “leverage crash” that caused tens of billions of dollars in losses and destroyed crypto. “We think the distress from Terra/Luna’s collapse is more limited now,” he said. Talking about the Terra/LUNA collapse, he also referred to firms like hedge fund Three Arrows Capital and crypto broker Voyager Digital. As we have also reported as Kriptokoin.com, these funds have filed for bankruptcy. JPMorgan also said:
However, after the launch of the Sapolia testnet in early July and the Ropsten testnet in June, we think the real driving force was Ethereum consolidation and positive data. This shows that Merge is viable in 2022.
ETH Merge, which will positively affect the market, is eagerly awaited
The upcoming Ethereum event is eagerly awaited by investors. Merge aims to move the Ethereum blockchain away from a proof-of-work network. Instead, it is designed to transfer to a PoS system, which should be faster and more efficient in terms of energy consumption during mining. JPMorgan said that a successful Ethereum merger later this year will help boost sentiment in the crypto markets. Merge is expected to happen in September, depending on how the upcoming Georli testnet is performing. This test will be held on August 11. One of the last steps before Merge.
Although ETH is seeing a strong rebound, it still has a long way to go. Meanwhile, the broader crypto market is making up for recent losses. JPMorgan states that trading volumes in crypto continued to drop in July. They said daily trading volumes on NFTs have dropped 84 percent year over year. As a result, the continued recovery of the cryptocurrency market may be due to the Ethereum merger, according to analysts.
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