‘Cryptomarket stabilises, but first a price drop before further rise’

According to investor bank JPMorgan, the crypto market is currently stabilizing. But they expect a price decline first, before a further rise follows.

The investor bank JPMorgan Chase regularly issues notes for their investors and for their own strategy. Now again and they see a ‘process of recovery’ as far as the cryptos are concerned. In the near term, however, JPMorgan analysts expect further sell-offs.

Crypto Market Outlook

JPMorgan Chase analysts, including Josh Younger and Veronica Mejia Bustamante, wrote about the cryptocurrency market’s prospects in a note that just became available. The two top analysts expect that the crypto market will still be ‘challenging’ in the short term. In addition, they note that blockchain data suggests that the recent cryptocurrency sell-off was done to cover losses. “There is probably still a surplus of underwater holdings that need to be cleared through the market,” they said. This could mean that the decline will continue before the crypto market stabilizes.

The Chinese also have influence here. This is because the production costs of, for example, Bitcoins will rise. This is due to China’s crackdown on Bitcoin miners. As a result, many miners will leave the country and seek refuge elsewhere. But this does take time.

Crypto Market Stabilizes

Still, they see a bright future for digital currencies. The JPMorgan analysts see the stability in the Bitcoin futures market as a positive factor. They concluded, “The cryptocurrency market is showing signs that it is not yet healthy, but it also appears that the process of healing is beginning.”

Last week, another analyst from the same bank wrote that despite the recent correction, they are reluctant to give up our negative outlook for Bitcoin and crypto markets in general. But that is gradually changing and the way up does not seem far away.