{"id":5779,"date":"2022-08-11T10:07:23","date_gmt":"2022-08-11T10:07:23","guid":{"rendered":"https:\/\/xcoins.com\/?p=5779"},"modified":"2022-11-24T10:50:55","modified_gmt":"2022-11-24T10:50:55","slug":"jpmorgan-crypto-has-found-a-floor-thanks-to-expectation-of-successful-ethereum-merge","status":"publish","type":"post","link":"https:\/\/xcoins.com\/en\/blog\/jpmorgan-crypto-has-found-a-floor-thanks-to-expectation-of-successful-ethereum-merge\/","title":{"rendered":"JPMorgan: Crypto Has &#8220;Found a Floor\u201d Thanks to Expectation of Successful Ethereum Merge"},"content":{"rendered":"\r\n<p>According to a note to clients, JPMorgan analysts have said that the cryptocurrency market may have \u201cfound a floor\u201d, while <a href=\"https:\/\/xcoins.com\/en\/blog\/ethereum-2-0-is-coming-what-does-this-mean-for-ethereum\/\">Ethereum\u2019s coming upgrade<\/a> could renew investors\u2019 faith in the crypto markets if all goes as planned.<\/p>\r\n\r\n\r\n\r\n<p><strong>Ethereum has now shot up over 90% compared to its June low<\/strong>, which JP Morgan attributes to its coming upgrade to <a href=\"https:\/\/xcoins.com\/en\/blog\/proof-of-work-vs-proof-of-stake-the-pros-and-cons\/\">Proof-of-Stake<\/a>.<\/p>\r\n\r\n\r\n\r\n<p>Overall, the news has catalyzed recoveries throughout the market, which has led analysts to conclude that the worst of the <a href=\"https:\/\/xcoins.com\/en\/blog\/crypto-bear-market-in-2022\/\">bear market<\/a> in the crypto market could now be over.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"h-jp-morgan-pinpoints-crypto-bottom\"><strong>JP Morgan pinpoints crypto bottom<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>Kenneth Worthington, JP Morgan analyst, advised clients that the market could have \u201cfound a floor\u201d\u00a0 in spite of the drop in trading volume after Terra\u2019s $40 billion collapse. Terra, a failed stablecoin that was pegged to the US dollar sent shockwaves through the market in May when it collapsed.<\/p>\r\n\r\n\r\n\r\n<p>However, Worthington argues that the impact of Terra (also known by its token name \u201cLuna\u201d) has demonstrated a \u2018more limited new contagion\u2019 \u2013 one that hasn\u2019t spooked investor appetites the way that analysts may have expected.<\/p>\r\n\r\n\r\n\r\n<p>There is no doubt that Terra\/Luna still caused immense damage. Crypto hedge fund Three Arrows Capital suffered, along with Hashed and several large crypto lenders including Celsius and Voyager Digital. Three Arrows defaulted on several uncollateralized loans after Terra, which resulted in a series of bankruptcies.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Terra\u2019s fall caused Bitcoin, Ethereum and several other digital assets to lose value, resulting in the global cryptocurrency market\u2019s capitalization dropping below $1 trillion, an event unseen since January 2021.\u00a0<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-5780\" src=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/08\/terra-implosion-1-1024x547.jpg\" alt=\"Luna token atop black market screen indicating downwards trend\" width=\"1024\" height=\"547\" srcset=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/08\/terra-implosion-1-1024x547.jpg 1024w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/08\/terra-implosion-1-300x160.jpg 300w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/08\/terra-implosion-1.jpg 1500w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/08\/terra-implosion-1-300x160@2x.jpg 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\r\n<figcaption><em>Terra\u2019s implosion impacted investors all over the globe, causing several firms and investors to lose billions of dollars.<\/em><\/figcaption>\r\n<\/figure>\r\n\r\n\r\n\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"h-ethereum-s-merge\"><strong>Ethereum\u2019s \u201cMerge\u201d<\/strong><\/h2>\r\n\r\n\r\n\r\n<p>More recently, however, as investor confidence has renewed, many crypto assets made strong recoveries, notably Ethereum. As Ethereum\u2019s \u201cMerge\u201d approaches, which constitutes an important upgrade to its network, the market has been revived.<\/p>\r\n\r\n\r\n\r\n<p>ETH had dropped below $900 per token on June 18 but currently trades well above $1700. JP Morgan attributes the turning point to the launch of the Sapolia [sic.] testnet in early July and Ropsten testnet in June as a source of investors&#8217; faith in the Merge\u2019s imminent success.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Goerli, the final testnet prior to the Merge, <a href=\"https:\/\/cointelegraph.com\/news\/sept-19-ethereum-merge-date-on-track-as-goerli-test-merge-successfully-finalized\">successfully went live today<\/a>, leaving just the final stages of the Merge following in mid-September.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>As market and investor sentiment grows stronger, Ethereum\u2019s price rising further is widely anticipated.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n<p>As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making any investment decision.<\/p>\r\n\r\n\r\n\r\n<p><em>To stay up to date on all things crypto, like Xcoins on <\/em><a href=\"https:\/\/www.facebook.com\/xcoinsofficial\"><em>Facebook<\/em><\/a><em>, and follow us on <\/em><a href=\"https:\/\/twitter.com\/realxcoins\"><em>Twitter<\/em><\/a><em>, <\/em><a href=\"https:\/\/www.instagram.com\/xcoins.hq\/\"><em>Instagram<\/em><\/a><em>, and <\/em><a href=\"https:\/\/www.linkedin.com\/company\/54161996\/\"><em>LinkedIn<\/em><\/a><em>.<\/em><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>According to a note to clients, JPMorgan analysts have said that the cryptocurrency market may have \u201cfound a floor\u201d, while [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":5782,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[426,429,427,765,766,767,768,769],"class_list":["post-5779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news-2","tag-bitcoin","tag-cryptocurrencies","tag-cryptocurrency","tag-ethereum-merge","tag-ethereum-terra","tag-found-a-floor","tag-jp-morgan","tag-market-end"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.4) - 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