JPMorgan Chase & Co. warned that the upside potential for crypto markets would be less than expected. Based on the relationship between stablecoins, and the rest crypto market, JPMorgan Chase & Co.’s analyst stated that stablecoins’ percentage of total crypto market capital “no longer seems excessively”.
JPMorgan’s Crypto Outlook
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 look excessive. This share is currently below 7%, which brings it back in line with its trend since 2020. The JPMorgan analyst continued.
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 the expectation that cryptocurrencies would be used more extensively to circumvent traditional banking systems 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 will launch its February campaign predicted The long-term bitcoin price would be $150,000 The bank conducted a survey of clients in January and found that most respondents expected bitcoin to reach $150,000 over the long-term. BTC To reach $60,000 and more This year.
Many people believe there is a significant upside to crypto markets, unlike JPMorgan. Defiance ETFs CEO, Defiance ETFs, stated that she is “HTM0_ still completely 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.
