Nearly $2 trillion in crypto market value has evaporated in months since the sky-rocketing prices in November last year.Nearly $2 trillion in crypto market value has evaporated in months since the sky-rocketing prices in November last year.
A Bottom May Be Near
Due to the recent global crisis and inflation, many employees in the crypto market have been laid off. Due to the recent global crisis and inflation, many employees in the crypto market have been laid off.
But the investment bank’s strategists said that the failure of some of the biggest crypto companies that became casualties of the crash isn’t surprising and added that entities using higher leverage are the most vulnerable. (Avoid leveraged trading on volatile days)
Three Arrows Capital has also been lined up for liquidation which JP Morgan strategists believe to be “a manifestation of this deleveraging process.”
The note published on Wednesday stated that the current deleveraging cycle may not last long since several crypto platforms with stronger balance sheets are taking measures to help “contain the contagion.”
Fundstrat technical strategist Mark Newton also said that lows should be just around the corner and added,
Bitcoin has had good success over the last dozen years at making cyclical lows every 90 weeks. Lows should be right around the corner according to this cycle composite, and one should be on alert in the month of July, looking to buy weakness for a healthy rebound, just as sentiment seems to be reaching a bearish tipping point.
The market is currently seeing the downturn of massive unsustainable business models.
But many crypto entities are yet to unravel. FTX CEO Sam Bankman-Fried (SBF) claimed that there are still several “third-tier” exchanges that are insolvent but have not been exposed suggesting more instability may transpire when they do.