JP Morgan Discusses Why Crypto Has A Limited Uptrend In The Future
JP Morgan – The current volatility in the cryptocurrency market has proven to be both beneficial and deterrent. The stock market has rebounded well after a huge drop. Cryptocurrencies were expected to have major rallies, large gains, and a market value rebound. This, though, might be the last of it. At least, that’s what JP Morgan claims.
The price of cryptocurrency has been linked to a number of things. The price of Bitcoin and other assets has been linked to a variety of factors, including legislation and endorsements. JP Morgan, on the other side, has begun to link cryptocurrency prices to stablecoin market capitalization.
JP Morgan pointed out that the chances of crypto markets witnessing a significant uptrend were rather limited
The banking giant concluded, based on statistics from a previous report, that when stablecoins accounted for roughly 10% of the global crypto market value, the assets would be on the rise. However, recent research shows that stablecoins entailed a 7% market share in the cryptocurrency industry. Because this was not exorbitant, any future rise would most likely be restricted.
JP Morgan added:
“In other words, the share of stablecoins in the total crypto market cap no longer looks excessive and as a result, we believe that any further upside for crypto markets from here would likely be more limited.”
Did the imposition of sanctions raise people’s expectations for cryptocurrency?
Sanctions of the highest level have been imposed as a result of the Ukraine-Russia conflict. Governments all around the world intended to reduce Russia’s financial power, thus the country was subjected to harsh sanctions. After gathering increasing capital in digital assets, Ukraine added to this notion by legalizing cryptocurrency. People began to speculate about a probable increase in the use of cryptocurrency as a result of this.
JP Morgan elaborated on the same, saying:
“These sanctions had raised expectations that cryptocurrencies will be used more extensively in the future to circumvent the traditional banking system given cryptocurrencies are not attached or depend on any government.”
Pouring cold water on this possible association, JP Morgan suggested that the rally was solely dependent on the crypto market. This was mostly, stablecoins.
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