JPMorgan: Cryptocurrency market has bottomed out and is ready to rise

Analysts at JPMorgan investment bank believe that the “contagion effect” from the collapse of Terra has been overcome, and the future transition of the Ethereum network to PoS will have a beneficial effect on market growth.

According to data from CoinMarketCap, Bitcoin (BTC) and Ether (ETH) are up 36% and 102%, respectively, from their mid-June lows. The emerging growth of the cryptocurrency market and the warming of the investment climate led to the restoration of the market capitalization of $1 trillion. According to JPMorgan experts, this is partly due to the decrease in the consequences of the collapse of the Terra ecosystem.

In an overview of important economic events, analyst Kenneth Worthington attributes the positive developments in the crypto industry to the increased community expectation of the future upgrade of the Ethereum Merge network and the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS).

“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.

Galaxy Digital CEO Michael Novogratz is more reserved about the changes. He believes it is unlikely that the market has finally recovered from the turmoil, since the economies of most of the world’s countries are in an “extremely difficult situation.” In this regard, Novogratz expects that the bitcoin rate will not be able to overcome the $30,000 level by the end of the year.