Why Bitcoin, Ethereum May Have Bottomed
- According to JP Morgan, with Bitcoin above $24,000, crypto markets have found a floor.
- The financial services firm says the main driver behind the crypto market rally is an anticipation of the Ethereum merge.
Non-institutional investors can now get exposure to the $1 trillion Collateralized Loan Obligations (CLO) market through ETFs.
Asserting that the anticipation over the Ethereum Merge was the main driver behind the rally in the cryptocurrency market over the last few weeks, financial services firm JPMorgan Chase & Co
JPM+1.65%+ Free Alerts says that the markets have found a bottom, despite subdued trading volumes.BTC and ETH are up 36% and 102%, respectively, from mid-July lows
Even as the world’s largest digital currency Bitcoin
fell as much as 75% from its all-time high in November last year. Crypto prices, notably that of BTC and Ethereum
They rebounded considerably in July, gaining 36% and 102%, respectively, from their mid-June lows. DON’T GET LEFT BEHIND: Discover which projects will have the brightest future in 2023 at the Future of Crypto by Benzinga conference on December 7, 2022, in New York City.
With BTC crossing the psychologically important level of the $24,000 mark, the crypto market has reclaimed the $1 trillion level, led by the rising prices of bluechip tokens.
Limited contagion from Terra collapse
“What has helped, we think, has been more limited new contagion from the collapse of Terra/Luna
. However, we think the real driver has been the Ethereum merge and positive data following the launch of the Sapolia testnet in early July and Ropsten testnet in June, indicating the merge is viable in 2022,” Worthington said in a client note.
ETH merge is expected in the week of September 19
The second-largest digital asset will transition from the energy-intensive proof-of-work consensus to a more energy-efficient proof-of-stake mechanism, known as the Ethereum Merge, on September 19, after completing two testnets in advance of the event.
Worthington said, “it appears that the crypto-markets have found a floor” despite trading volumes still being depressed.
In this context, he noted that Coinbase Global Inc.
lost ground to FTX in July. Over $30 billion was raised in 2022
Meanwhile, according to a recent report by crypto market intelligence firm Messari, about 1,199 rounds have raised more funds in six months in 2022 than in all of 2021.
Over $30.3 billion will be raised in these rounds in 2022.
According to the report, funds have been raised for Web3, centralized finance (CeFi), decentralized finance (DeFi), infrastructure, and NFTs.
CeFi has raised over one-third of the funds at $10.2 billion, followed by Web3, infrastructure, and NFTs, the report notes.
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