J.P. Morgan expects a slowdown in the growth of the cryptocurrency market in the near future
J.P. Morgan predicts a slowdown in the growth of the cryptocurrency market in the near future. This point of view is shared by the chief strategist of the investment bank Nikolaos Panigirtzoglou.
Earlier, the media wrote that J.P. Morgan considers the share of stablecoins in the total market value of digital currencies as a growth or fall factor. Recently, when the share of stablecoins was about 10% of the total market capitalization of the crypto market, Panigirtzoglou argued that this indicated further growth of the industry.
The analyst then stated that the share of stablecoins in the total market capitalization is not that big, it is about 7%, which brings it back to the trends of 2020. Now Panigirtzoglou believes that in the future, the growth of crypto markets will be more limited.
The analyst noted that the rates of BTC and ETH rose at the beginning of this spring after the economic sanctions imposed on Russia. Such measures, according to the expert, influenced the expectations of investors who believe that in the future digital currencies will be more widely used to bypass the existing banking system. At the same time, Panigirtsoglu warns that the recent growth in crypto assets may soon stop.
But the latest study of the Gemini crypto exchange showed that almost 50% of crypto asset holders from the United States, Latin America and the Asia-Pacific region purchased digital currencies for the first time last year. One of the prerequisites for the growth of attention to the crypto market, analysts believe, was inflation in the countries that were faced with the devaluation of their national currencies.
The most popular cryptocurrencies were among investors from Indonesia and Brazil. 41% of survey participants from these countries spoke about cryptocurrency ownership, compared to 20% in the US and 18% in the UK.
Nearly 80% of those surveyed who purchased cryptocurrencies last year indicated that they made the decision to purchase digital assets because of their long-term investment potential. Those who live in countries that have experienced devaluation of national currencies against the US dollar and do not own crypto assets were more than 5 times more likely to announce plans to purchase crypto coins as insurance against inflation. Does this mean that the crypto market will grow? Or will the prediction of Nikolaos Panigirtzoglou come true?
