Whales keep hoarding assets at low prices while JP Morgan predicts the end of the Crypto winter.
The digital asset market recovered the 900,000 million dollars of global capitalization. Bitcoin (BTC) and Ethereum (ETH) stopped the daily losses on Tuesday, trying to get back the strength they had in 20,000 and 1,100 dollars.
The cryptocurrencies left July 5, a day of prominent volatility, behind, with increases registered at 6% for BTC and 10% for ETH, but then became diluted to the point that the main currencies went to crumble again.
However, the first digital assets had shown their strong position on price levels that apparently have an effect on the market. In addition, the whales are moving, which are appearing to hoard coins, and there are other signs that make the JP Morgan expert team believe that the worst stage of the crypto winter might become an issue of the past.
Despite a harsh quarter for investors, Nikolaos Panigirtzoglou, an expert and managing director at JPMorgan, observes strong funding pullback as signs of fading crypto winter. He said that Indicators like the net leverage metric express that deleveraging is already underway. Panigirtzoglou explained that he is aware of the rise of these positions during the comprehensive market.
He also notes that part of the reason for this prediction focused on other crypto firms with “stronger balance sheets” are making it a business of theirs to help ensure that the damage that has spread through the comprehensive market gets contained.
The analyst also speaks about the intervention of the Bahamian digital assets derivatives exchange FTX in the BlockFi predicament. The exchange assisted BlockFi with a $250 million line of credit to help the company consolidate this position during this period.
Second, the forecast got also influenced by venture capital funding and its strength during the current market situations. Despite the crypto winter, funding amassed at least $5 billion between May and June.
The bank also highlights that funding is still flowing into projects linked to the crypto space. The bank pointed out that what appears to be different now from previous pullbacks is that retail investors are no longer the only ones going through difficult times.
Instead, many prominent financial and other entities are now trying their best in the market. The point that JP Morgan makes is clear: while some money is abandoning the sector, more money gets injected to strengthen the market.
Therefore, the essential thing for investors is to carefully think about the investment cases and pay attention to those cases that represent better opportunities for the future.
By: Jenson Nuñez
