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JPMorgan predicts limited upside to crypto markets: Here’s why?

JPMorgan predicts that the upside to crypto markets would be limited. This comes after the bank analysts figure out that the stablecoin market no longer looks too big. Earlier, they accounted for 10% of the entire crypto market cap, which looked excessive, but now we are at 7%. So, JPMorgan warns that the upside has come, and we might not see anything major from here on.

JPMorgan predicts price action for crypto markets

The analysts at the firm are using stablecoin as an indicator for the potential upside or downside of the market. This means if the stablecoin market becomes too large, then there is a chance for growth and vice versa. Therefore, when they represented 10% of the entire market cap, the analyst from the bank Panigirtzoglou predicted that the markets would move up.

JPMorgan predicts limited upside to crypto markets

Image Source: JP Morgan

However, a recent note from the bank said that the 7% market share of the stablecoins no longer looks too big. Therefore, the chances for an upside could also be limited. This is not a concrete prediction of the price action of crypto per see, but JPMorgan analysts believe it could happen.

The analysts further explained that in March, we already saw a rally due to the restrictions imposed on Russia and the war. The rally was based on the fact that crypto could be used for global transactions as it isn’t controlled by anyone. But now, the stablecoin indicator shows that the rally might be fading away.

Why don’t I take JPMorgan’s crypto predictions too seriously?

While I am not an expert to discard or approve of analysts at such major firms, I don’t take JPMorgan’s crypto predictions too seriously. The reason is very simple—they don’t stick to their words and change statements too often. Just back in February, the firm predicted that the long-term price of Bitcoin would reach $150k. Even in the past, they have given similar price predictions quite a few times for the short and long-term. However, even during that period, a slight market movement would have altered their predictions to something entirely different in a few weeks.


What are your thoughts as JPMorgan predicts limited upside to crypto markets? And do you think that the firm changes its predictions too often? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: Markets aren’t ready for Bitcoin-backed bonds, says Michael Saylor.

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