Crypto Markets Have ‘Hit The Floor,’ JP Morgan Says, As Bitcoin Nears $24,000


Share post:

The expectation of the Merge, a long-awaited improvement to the Ethereum network, is the primary factor for the recent rebound in cryptocurrencies, according to JP Morgan, which thinks the market has found its bottom despite low trading volumes.

Bitcoin (BTC) and Ether (ETH) have increased by 35% and 101%, respectively, since their mid-June lows, and the overall market value of cryptocurrencies has regained $1 trillion, according to data from CoinMarketCap.

In a Monday note to clients, JPMorgan analyst Kenneth Worthington primarily ascribed the shifting economics of the cryptocurrency market to the planned Ethereum Merge that will switch the blockchain from Proof-of-Work (PoW) to Proof-of-Stake (PoS).

Worthington said:

“What has helped, we believe, has been more limited new contagion from the implosion of Terra/Luna.”

Successful Ethereum Merge A Boon To Crypto Markets

Nevertheless, the JPMorgan analyst believes the real impetus has been the Ethereum integration and favorable statistics following the unveiling of the Sapolia and Ropsten testnets in early July and June, indicating that the merge is feasible in 2022.

“Despite trade volumes remaining down, it looks that cryptocurrency markets have found a floor,” Worthington disclosed.

JPMorgan stated that a successful Ethereum unification later this year will help bolster investor confidence.

The integration is anticipated to occur in September, pending the performance of the next Georli testnet. This test is scheduled to take place on August 11 and is one of the final steps prior to the merge.

Ethereum's successful integration later this year, according to JPMorgan, is expected to help boost investor confidence. Image: Analytics Insight

PoW To PoS Sending Positive Vibe

The price of Bitcoin increased by 20% in July, while the price of Ethereum increased by roughly 60% compared to May, on the back of encouraging news regarding the cryptocurrency’s shift from PoW to PoS; the system is intended to increase the network’s speed and mining efficiency.

In addition, JPMorgan observed that the capacity of Bitcoin and Ethereum to rise since June’s lows is another indication that the market has reached a bottom. Bitcoin’s price has fallen by over 60 percent since its all-time high of nearly $68,000 in November of last year.

In July, Decentralized Finance also increased by 22%, and Worthington pointed out that:

“Considering that DeFi tends to be constructed on Ethereum, the alleviation of early concerns about DeFi and the better news regarding the Ethereum Merge are likely behind the exceptionally large price rise of ETH in comparison to bitcoin.”

As crypto investors seek a much-needed boost in confidence, the long-term revival of the cryptocurrency market may be dependent on the imminent Ethereum merger.

BTC total market cap at $444.9 billion on the daily chart | Source:

Featured image from The Spruce, Chart from

Original Source:

Author : Jet Encila

Related articles

G7 Acelera Discussões Sobre Rigorosa Regulamentação de Criptomoedas

O Grupo dos Sete internacional, amplamente conhecido como G7, ainda está preocupado com a implosão e pedido de...


G7 として広く言及されている国際的な G7 は、仮想通貨取引所 FTX の内破と破産申請を依然として懸念しており、したがって、 押す 暗号業界のより堅牢で厳格な規制のために。 明らかに、英国、カナダ、イタリア、ドイツ、日本、フランス、米国を含むこの協会の加盟国は、暗号法に関する進行中の議論を早めることを計画しています. 起草された計画に基づいて、中央銀行の幹部と財務大臣は5月中旬までに収束するはずです。 この会議は、岸田文夫首相が広島で 2023 年に首脳会議を開催する数日前に予定されています。 注目に値するのは、バハマに本社を置く仮想通貨取引所 FTX の破綻と、 辞任 ...

G7 تسرع المناقشات حول تنظيم التشفير الصارم

لا تزال مجموعة السبعة الدولية التي يشار إليها على نطاق واسع باسم G7 تشعر بالقلق إزاء الانهيار الداخلي...

G7 به بحث در مورد مقررات سختگیرانه رمزنگاری سرعت می بخشد

گروه بین‌المللی هفت که به طور گسترده به عنوان G7 شناخته می‌شود، همچنان نگران انفجار و تشکیل پرونده...