© Reuters. JPMorgan Says Crypto Winter Likely Won’t Materialize, Sees 30% Upside Potential in Bitcoin (BTC) Price
By Senad Karaahmetovic
JPMorgan strategist Nikolaos Panigirtzoglou has weighed in on the most recent developments in the cryptocurrency world, notably the collapse of the stablecoin.
The strategist sees “relatively limited spillovers” to other stablecoins so far as the TVL (Total Value Locked) in DeFi projects still remains high.
“Going forward we believe that the trajectory for VC funding would be crucial in helping the crypto market to avoid the long winter of 2018/2019. If VC funding dries up from here as a result of the loss of confidence from the collapse of Terra’s ecosystem, then a return to the long winter of 2018/2019 would look more likely for crypto markets,” Panigirtzoglou told clients in a note.
However, the strategist sees “little evidence” that the VC funding is disappearing in the light of TerraUSD collapse.
“Of the $25bn VC funding YTD, almost $4bn came after Terra. Our best guess is the VC funding will continue and a long winter similar to 2018/2019 would not materialize,” he added.
On (BTC) price, the analyst notes that the bitcoin to gold vol ratio has declined modestly towards 4x, which implies a “fair value of around $38k,” which offers “significant upside from here.”
Bitcoin price is down 1.3% today to trade in the low $29,000s.
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