Since last month, the crypto market has been experiencing the biggest bear market in its short history. All is not lost, though, according to JPMorgan Strategist Nikolaos Panigirtzoglou, who predicted that the great crypto dip is slowly coming to an end.
The analyst stated that there has been an increased interest in bailing out companies, which should propel the market to move upward. Another strong argument supporting his claim is strong venture capital funding over the past two months. He says:
"Indicators like our Net Leverage metric suggest that deleveraging is already well advanced. The fact that crypto entities with the stronger balance sheets are currently stepping in to help contain contagion."
Deleveraging of crypto began earlier this May after the fall of the Terra Luna network, where billions worth of US dollars were lost in the process of liquidation. The crash took the whole market down with it, as every single significant cryptocurrency lost value, including Bitcoin and Ethereum, and several crypto lenders such as BlockFi or Celsius found themselves in peril.
However, Panigirtzoglou believes that this dreadful period will soon be over. He also keeps a positive attitude due to healthy venture capital investments into crypto projects. This is good news for the crypto community, who might finally start feeling a little more hopeful about the future.
