JP Morgan predicts crypto’s troubles may soon be gone  

The current trends of bearish sentiments in crypto markets might not persist much longer, investment banking firm, JPMorgan predicts. 

Given the steep price drops witnessed by crypto tokens, it should not be surprising that several crypto companies, like Celsius, Three Arrows Capital, and others have failed in the recent past. 

Despite the negative sentiments among retail investors, analysts from JPMorgan have also predicted that the present deleveraging cycle which has become common in the case of crypto companies might not last very long. 

The financial giant argues that this downturn might end soon because venture capital investing, a key source of funds for the crypto ecosystem, remained at a robust pace in May and June, and the fact that crypto organisations with better balance sheets are currently stepping in to assist in preventing contagion. 

For example, FTX exchange, led by Samuel Bankman-Fried, recently bailed out one such troubled company, BlockFi. Moreover, the exchange has been lending money to select businesses and is reportedly even considering acquisitions of companies going through a rough patch due to their exposure in cryptocurrencies. 

In recent months, there have been a series of high-profile explosions and snags in the cryptocurrency market. 

Among the indications of trouble spreading throughout the business include the failure of the Terra/Luna ecosystem in May, the collapse of Three Arrows Capital, and stopped withdrawals at lenders like Celsius Network. 

After surpassing $3 trillion mark in November of last year, the total market cap of cryptocurrencies was down to about 890 billion on Thursday, as per data from CoinMarketCap.  

But as per JPMorgan, a significant proportion of the current troubles may be related to cryptocurrencies that might subdue soon.