JPMorgan Chase & Co. has warned that any further gains in cryptocurrency markets would be limited. The bank’s analyst noted that the stablecoins’ percentage of the total crypto market cap “no longer looks excessive” based on the relationship between stablecoins and the rest of the crypto market.
JPMorgan’s Crypto Predictions:
In a note published last week, global investment giant JPMorgan reportedly warned that cryptocurrency markets have limited Potential.
Stablecoins’ percentage of the entire cryptocurrency market value, according to JPMorgan, is a signal of probable 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.” 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 due to financial restrictions imposed on Russia by Western countries following its invasion of Ukraine.
“These restrictions have fueled expectations that cryptocurrencies would be used more widely in the future to evade the traditional banking system, given that cryptocurrencies are neither tied to or reliant on any government,” the note said.
However, the JPMorgan analyst warned that the crypto market rallies might 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 most respondents predicted the price of BTC to reach $60,000 or higher this year.
Unlike JPMorgan, some people have stated that they believe the crypto market has a large upside. Defiance ETFs’ CEO claimed she is “totally optimistic on bitcoin” and expects the crypto currency’s price to reach $100,000. Last week, Mike Novogratz, the CEO of Galaxy Digital, listed various bullish reasons affecting cryptocurrency markets.
