According to JPMorgan analysts, the cryptocurrency market will soon come out of the “winter” state.
As a result of the recent fall in bitcoin, the leverage in the cryptosphere has been significantly reduced. If it continues to decline in the coming months, then the lion's share of players with margin positions will leave the market.
In parallel, there is an exit of retail investors, who initially entered the industry with a speculative attitude, said JPMorgan strategist Nikolaos Panigirtzoglou.
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In addition to sales in May and June, they were scared by the industry crisis that erupted as a result of the collapse of the Terra ecosystem and liquidity problems for hedge funds and crypto companies. Now we are witnessing the maturation of the industry, and one of the positive factors was the help of problem platforms and startups from large companies and exchanges.
Venture investments in the cryptosphere are on the rise. In May and June, the volume of such capital investments amounted to about $8 billion, the bank said in a note.
Last week, JPMorgan strategists published a report on the situation in the crypto market. In their opinion, miners will continue to sell bitcoins in the third quarter of 2022 if the value of the digital currency decreases during this period.