JPM - 2 Reasons JPMorgan Predicts Crypto Will Keep Going Higher
Over the last seven months or so, the total cryptocurrency market cap has been cut by more than half. At one point in late June, crypto collectively lost nearly 65% of its value since the new year.
But thanks to some newfound momentum, prices have recovered in the last few weeks. The upswing seems to have been substantial enough for one of the world's leading financial service firms, JPMorgan Chase (NYSE: JPM) , to believe that the asset class has bottomed out. In a statement this week, analysts from the company asserted that, due to a few factors, the recent rally in prices might prove that the market has "found a floor."
The first topic JPMorgan highlighted was related to the systemic impact induced by the implosion of Terra 's (CRYPTO: LUNA) stablecoin, which has since rebranded to Terra Classic (CRYPTO: LUNC) , seems to have subsided. The de-pegging of the third-most-popular stablecoin at the time caused a widespread market sell-off. In turn, this caused popular lending platforms like Voyager (CRYPTO: VGX) and Celsius (CRYPTO: CEL) to become insolvent and subsequently prohibit customers from withdrawing funds.
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2 Reasons JPMorgan Predicts Crypto Will Keep Going Higher