JPMorgan Reveals Crypto Market Has Hitting Its Bottom. Following the recent small rise in the cryptocurrency market, banking giant JPMorgan revealed the crypto sector has found ground or is already hitting a bottom.
In a note to clients on Monday, August 8, 2022, JPMorgan analyst Kenneth Worthington, attributed the changing fortunes of the crypto sector to the upcoming Ethereum Merger (ETH) upgrade that will transition blockchain from Proof of Work (PoW) to Proof of Stake (PoS).
In addition, JPMorgan analysts stated the market gains have resulted in a reclamation of the cryptocurrency market cap of USD 1 trillion or around IDR 14,576 trillion in part due to the reduced impact of the destruction of the Terra ecosystem (LUNA).
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“It seems that the crypto market has found ground although trading volumes are still depressed. What helps, we think, is the new, more limited contagion from the Terra/Luna collapse,” said JPMorgan, quoted from Finbold, Monday (15/8/2022).
However, JPMorgan thinks the real driver is the imminent ethereum merger and positive data following the launch of the Sapolia testnet in early July and the Ropsten testnet in June, suggesting a merger could take place in 2022.
The Impact of Bitcoin and Ethereum Prices on the Crypto Market
The bank noted the ability of Bitcoin (BTC) and Ethereum to rise 36 percent and 102 percent since June lows is another indicator the market has bottomed out. Overall, Bitcoin has fallen more than 60 percent from its all-time high of nearly $68,000 in November 2021.
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Since announcing the merger upgrade date scheduled for September 19, Ethereum has been on a bullish momentum leading the market in gains after the disastrous first half of 2022.
As a result, the lender notes that if the merger is successful, it will help general sentiment in the crypto market.
Previously, Bitcoin had managed to touch the price of USD 25,000 or around Rp. 367.1 million on the weekend of Asia time before finally returning to the price where it held for weeks.
The largest cryptocurrency by market cap was recently trading at around USD 24,400, flat over the past 24 hours and slightly lower than at the start of the weekend.
JPMorgan Reveals Crypto Market Has Hitting Its Bottom. At the moment investors remain optimistic about economic indicators pointing to lower inflation and a lower probability of a recession. Bitcoin has risen over the past three weeks to change hands towards the upper end of the USD 20,000 to USD 24,000 range.
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CEO of BitBull Capital crypto fund manager, Joe DiPasquale said, the price of Bitcoin holding above USD 20,000 is a bullish signal.
“However, we haven’t witnessed a break above $25,000, which could see BTC move quickly towards the $29,000 to $30,000 range,” DiPasquale said as quoted by CoinDesk, Monday (15/8/2022).
Most of the other altcoins were in the red in the early third week of August 2022. Ethereum, the second largest cryptocurrency, also experienced a slight correction, dropping 1.6 percent in the last 24 hours.
Stock market
Crypto market gains over the weekend largely followed stocks, which have also regained ground in recent weeks after a dismal first seven months.
Previously, the price of bitcoin and other top cryptocurrencies turned towards the red zone earlier this week, to be exact Monday morning, August 15, 2022. The majority of the top crypto ranks, including bitcoin, weakened.
Based on Coinmarketcap data, Monday (15/8/2022), the crypto with the largest market capitalization bitcoin (BTC) weakened 0.35 percent in the last 24 hours. However, over the past week, the price of bitcoin rose 4.69 percent. Now, the price of bitcoin is at USD 24,317.74 or around IDR 356.74 million (assuming an exchange rate of IDR 14,670 per US dollar).
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Ethereum prices are also sluggish. In the last 24 hours, the price of ethereum has lost 2.24 percent. However, over the past week, the price of ethereum (ETH) soared 13.52 percent. Currently, the price of ethereum is in the position of USD 1,935.80 or around Rp. 28.38 million.
Furthermore binance coin (BNB) slumped 1.83 percent in the last 24 hours. During the week, BNB prices fell 1.6 percent. Now, the price of BNB is traded at USD 318.76.
Meanwhile, the price of cardano (ADA) rose 1.84 percent over the last 24 hours. In the past week, the price of cardano shot up 7.67 percent. Thus, the price of ADA is now traded at USD 0.5699.
The price of XRP has slashed 0.06 percent in the last 24 hours. However, over the past week, the price of XRP has soared 1.03 percent. Currently, the price of XRP is trading at USD 0.3772.
Likewise, the price of solana (SOL) tends to be sluggish. Solana prices fell 2.89 percent in 24 hours. In the last 24 hours, the price of solana is in the position of USD 45.20. During the past week, the price of solana soared 11.18 percent.
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The price of dogecoin has soared 12.23 percent in the last 24 hours. In the last week, the price of Dogecoin shot up 18.90 percent. Now, the price of Dogecoin (DOGE) is at USD 0.08193.
Stablecoins such as tether (USDT) have been in the red in the last 24 hours. USDT prices rose 0.01 percent for the week. Currently, the price of tether is in the position of USD 1.00.
JPMorgan Reveals Crypto Market Has Hitting Its Bottom. The price of USD Coin (USDC) is down 0.02 percent in the last 24 hours. Over the past week, the USDC price has lost 0.01 percent. Now, the price of USDC is in the position of USD 0.9998.
Meanwhile, the Binance USD (BUSD) price slipped 0.02 percent in the last 24 hours. Over the past week, the BUSD price has been in the green zone. Currently, the price of BUSD is at USD 0.9997.
