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JPMorgan: Crypto market deleveraging will end soon

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JPMorgan: Crypto market deleveraging will end soon

The worst of the bear market may be behind us as the strong players in the crypto industry bail out the weak to contain the contagion. This was announced by JPMorgan strategist Nikolaos Panigirtzoglou, writes business insider.

The specialist may have been referring to FTX Sam Benman-Freed’s interest in buying BlockFi. The online broker Robinhood was also mentioned as a target for the media takeover. The exchange previously supported Voyager Digital.

Panigirtzoglou added that “the echoes of the deleveraging process will continue for some time yet,” citing Three Arrows Capital’s default.

As an additional factor for optimism, the expert mentioned the high rates of venture financing in May-June.

JPMorgan estimated the inflow of funds for this period at $5 billion. According to Dove Metrics trackerthe indicator amounted to $8.6 billion. Relative to March-April, it decreased by $2.2 billion, but increased by $3.4 billion compared to May-June 2021.

“Indicators like net leverage say that deleveraging is already at an advanced stage,” he said.

Recall that Deutsche Bank experts predicted a recovery of bitcoin to $28,000 by the end of 2022.

Earlier, Arcane Research analysts did not rule out a drop in the price of the first cryptocurrency to $10,350.

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Source: Cryptocurrency

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