JPMorgan believes that the crypto market has reached the bottom. Analysts expect industry growth
JPMorgan analysts expressed the opinion that the “contagion effect” from the collapse of Terra has already been overcome, and the transition of the Ethereum network to PoS expected in September of this year will have a positive impact on the entire industry.
According to CoinMarketCap, the price of BTC has risen by more than 35% since the lows of the middle of the first summer month. And the value of ETH has increased by more than 100%.
The emerging growth of the cryptosphere and the warming of the investment climate have become prerequisites for the growth of market capitalization for $1 trillion. JPMorgan notes that part of the positive trend can also be associated with a decrease in the results of the collapse of the Terra project.
“We believe that the crypto market has bottomed out. Even though trading volumes are still at a low level, the industry was able to survive the “contagion effect” from the collapse of Terra. The strongest driver was the anticipation of Ethereum’s transition to PoS, as well as positive data after the launch of the Sapolia testnet in early July and the Ropsten testnet in June.
Meanwhile, Galaxy Digital CEO Michael Novogratz announced a forecast according to which by the end of 2022 the price of bitcoin will fluctuate between $20,000 and $30,000. The entrepreneur pointed out that the indicators of BTC and the entire industry depend on the decisions of the US Federal Reserve. At present, the US economy, like the economies of a significant number of countries, is in an “extremely difficult situation.”
“Now there are opinions that everything will work out. I don’t really believe this, but the behavior of the markets suggests that many people do. Perhaps the Fed will be able to keep raising base rates. But can bitcoin overcome $30,000 during this rise? We’ll see, but I doubt it. I think we will continue to consolidate. In general, I would be very pleased if bitcoin lingered in the levels from $20,000 to $22,000 or from $20,000 to $30,000, and then began to grow strongly,” Novogratz said.
In addition, he recalled the recent news regarding the cooperation between BlackRock and Coinbase. The companies have entered into a partnership under which Aladdin customers will be able to trade digital currencies.
According to some analysts, this could be a prerequisite for a significant increase in the price of bitcoin. Mike Novogratz also thinks it’s “incredibly important to the industry”.