JPMorgan Sees Limited Upside for Crypto Markets – JPMorgan Chase & Co. reportedly warned that any further gains in cryptocurrency markets would be limited. The bank’s analyst noted that stablecoins’ percentage of the total crypto market cap “no longer looks excessive” based on the relationship between stablecoins as well as the rest of the crypto market.
Stablecoins’ percentage of the entire cryptocurrency market value, according to JPMorgan, is a signal of possible rallies or drops. When stablecoins accounted for about 10% of the global crypto market value earlier this year, JPMorgan analyst Panigirtzoglou predicted more potential for crypto markets.
“The fraction of stablecoins in overall crypto market valuation no longer looks excessive,” he wrote in a note last week. This share is currently below 7%, resuming its downward pattern seen since 2020.”
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The JPMorgan analyst went on to say:
“As a result, we anticipate that any further rise for crypto markets will be limited from here.”
Panigirtzoglou noted that bitcoin (BTC) and ether (ETH) prices rose in early March as a result of financial restrictions imposed on Russia by Western countries following its invasion of Ukraine.
“Given that cryptocurrencies are neither tied to or reliant on any government,” the report says, “these limits have spurred predictions that cryptocurrencies will be utilized more widely in the future to circumvent the traditional banking system.”
The JPMorgan analyst, however, warned that the crypto market rallies may be coming to an end, citing the stablecoin share indicator.
JPMorgan forecast in February that bitcoin’s long-term price would reach $150,000. A client survey done by the bank in January revealed that the majority of respondents predicted the price of BTC to reach $60,000 or higher this year.
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Unlike JPMorgan, some people believe the crypto sector has a lot of room for growth. Defiance ETFs’ CEO claimed she is “totally optimistic on bitcoin” and expects the cryptocurrency’s price to reach $100,000. Last week, Mike Novogratz, the CEO of Galaxy Digital, listed a variety of bullish reasons affecting cryptocurrency markets.