JPMorgan said that the fall of the cryptocurrency market may stop in the near future. There are signs that the industry deleveraging is coming to an end, the bank's head of research Nikolaos Panigirtzoglou said, according to Insider.
He is sure that most of the traders with margin positions have already left the market, and retail investors have reduced their investments. This is because investor confidence in the cryptocurrency market has been undermined this year due to the collapse of Terra and the situation with the Three Arrows Capital fund, according to a banking analyst.
What matters to the industry, Panigirtzoglou said, is that crypto companies with stronger balance sheets like FTX (Alameda) are now stepping in and lending to troubled firms.
A JPMorgan spokesman noted the positive situation with venture capital financing, which is an important source of capital for the sector: the injection of such funds into the industry in May and June continued to grow and amounted to about $5 billion.
In recent months, the activities of large crypto lenders have been under threat: the Celsius platform has faced a lack of liquidity, and the Three Arrows Capital (3AC) cryptocurrency fund has lost the ability to fulfill its obligations to clients.