The worst of the bear market may be behind us, as strong players in the crypto industry are ‘saving’ the weak to contain contagion. This was reported by JPMorgan strategist Nikolaos Panigirtzoglou, according to Business Insider.
The strategist may have had in mind Sam Bankman-Fried’s interest in acquiring BlockFi. Media reports also mentioned the online broker Robinhood as a potential acquisition target. Earlier, the exchange backed Voyager Digital.
Panigirtzoglou added that ‘the reverberations of the deleveraging process will continue for some time,’ citing the Three Arrows Capital default.
As an additional factor for optimism, the expert cited the high pace of venture funding in May and June.
JPMorgan estimated inflows of $5 billion for this period. According to the Dove Metrics tracker, the figure stood at $8.6 billion. Relative to March–April, it was down $2.2 billion, but up $3.4 billion versus May–June 2021.
Indicators such as net leverage suggest that the deleveraging is already at an advanced stage, he said.
Deutsche Bank analysts had forecast Bitcoin to recover to $28 000 by the end of 2022.
Earlier, Arcane Research analysts did not rule out a decline in the price of the first cryptocurrency to $10 350.
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