Home Markets Crypto markets have ‘found bottom’ amid Ethereum merger hopes: JPMorgan

Crypto markets have ‘found bottom’ amid Ethereum merger hopes: JPMorgan

0
Crypto markets have ‘found bottom’ amid Ethereum merger hopes: JPMorgan
  • Crypto prices may have “bottomed out” in recent weeks, JPMorgan said in a note on Monday.
  • Bitcoin jumped 36% from its mid-June low, while ether rose 102% over the same period.
  • “We believe the real driver has been the Ethereum merger and positive data…indicating the merger is viable in 2022,” JPMorgan said.

After bitcoin fell 75% from its peak, crypto markets appear to have “found a bottom”. JP Morgan said in a note on Monday.

Bitcoin and ether jumped 36% and 102% respectively from their mid-June lows, and the total cryptocurrency market value recovered to the all-important $1 trillion level, the data shows. from CoinMarketCap.

JPMorgan analysts said there were two reasons behind the recent strength in the cryptocurrency market.

“What we think helped was further, more limited contagion from the Terra/Luna collapse,” JPMorgan said, referring to the stablecoin implosion that led to tens of billions of dollars in losses and sparked leverage that wiped out crypto firms like hedge fund Three Arrows Capital and crypto broker Voyager Digital.

“However, we believe the real driver was the Ethereum merger and positive data following the launch of the Sapolia testnet in early July and the Ropsten testnet in June, indicating that the merger is viable in 2022,” JPMorgan said.

The The next Ethereum event is highly anticipated by investors. The merger is designed to move the Ethereum blockchain away from a proof-of-work network and instead into a proof-of-stake system, which is supposed to be faster and more efficient from a power consumption perspective when of mining.

A successful Ethereum merger later this year should help boost sentiment in crypto markets, JPMorgan said. The merger is currently expected to take place in September, depending on the performance of the upcoming Georli testnet. This test is scheduled for August 11 and is one of the last steps before the merger.

While Ether is enjoying a strong resurgence, there is still a long way to go and the broader crypto market is recouping recent losses. Crypto trading volumes continued to decline in July, and daily NFT trading volumes plummeted 84% year over year, JPMorgan said.

Ultimately, the ongoing recovery in the cryptocurrency market may hinge on the next short-term Ethereum meltdown, as crypto investors seek a much-needed boost in sentiment.

LEAVE A REPLY

Please enter your comment!
Please enter your name here