JPMorgan Sees Limited Upside for Crypto Markets

 JPMorgan Sees Limited Upside for Crypto Markets

 

JPMorgan Chase & Co. has warned that any upside for crypto markets from here would likely be more limited. Basing their prediction on the relationship between stable coins and the rest of the crypto market, the bank’s analyst explained that stable coins’ share of the total crypto market cap "no longer looks excessive."

JPMorgan’s crypto outlook does not appear bullish as of now. Global investment bank JPMorgan has reportedly warned about cryptocurrency markets' having limited upside in a note published last week.

JPMorgan sees stable coins’ share of the total cryptocurrency market value as an indicator of potential for rallies or declines. It is notable that previously, when stable coins accounted for almost 10% of the total crypto market cap, JPMorgan analyst Panigirtzoglou said it "pointed to further upside for crypto markets."

In the note issued last week, he explained: "The share of stable coins in the total crypto market cap no longer looks excessive. This share currently stands below 7%, which brings it back to its trend since 2020."

The JPMorgan analyst continued:

As a result we believe that any further upside for crypto markets from here would likely be more limited. Panigirtzoglou pointed out that the prices of bitcoin (BTC) and ether (ETH) rallied in early March following financial sanctions imposed on Russia by Western countries after its invasion of Ukraine.

The note describes: "These sanctions have raised expectations that cryptocurrencies will be used more extensively in the future to circumvent the traditional banking system, given that cryptocurrencies are not attached to or dependent on any government."

However, citing the stable coin share indicator, the JPMorgan analyst warned that the rallies seen in crypto markets may be coming to an end.

In February, JPMorgan predicted that the long-term price of bitcoin would reach $150,000. In January, the bank conducted a client survey and found that the majority of respondents expected the price of BTC to reach $60,000 or more this year.

Unlike JPMorgan, several people have said they see a significant upside to the crypto market. The CEO of Defiance ETFs said she remains "completely bullish on bitcoin," expecting the price of the cryptocurrency to reach $100,000. Last week, Mike Novogratz, the CEO of Galaxy Digital, outlined a number of bullish factors affecting crypto markets.