JP Morgan warns of a long crypto winter
While the JPMorgan team believes that "as economic difficulty persists globally, a retrenchment in venture capital funding for the crypto industry indicates that the fall in the crypto market is not going to end any time soon", XRP gained about 12% earlier today.
Before easing back to 0.4855, by claiming to 0.5058, on Friday 4 November, Ripple gained 11.74% on the day from the open price and 12.3% from the daily low. It was the largest one-day percentage gain since November 4 last year. Currently, XRP's market cap reaches $24.92042B, or 2.42% of the total cryptocurrency market cap. Even if it is much lower than its highest market cap at $83.44071B and its current price is 84.71% lower than its all-time high ($3.29), it still shows significant improvement in recent months past seven days, XRP raised 7.85%.
Among other major coins, Ethereum, trading at $1,582 shows a 1.90% gain. Bitcoin also at $2,580 shows more than a 2% daily gain.
As market risk is still high and many factors signal a recession in the next one and a half years, many believe that the winter of the crypto market cannot end anytime soon. "Reports reveal that JPMorgan Chase (NYSE: JPM) & Co. strategists including Nikolaos Panigirtzoglou claimed that currently, venture capital funding is nearly about $10 billion a year, which is comparatively less than a third of the pace in 2021."
While we can see the lack of investment in risky assets including the crypto market, with continuing the weakness of economic data that was more evident in Europe and China recently, investments in the short term can even decrease more.
While fundamental data still cannot confirm the currently formed uptrend, technical indicators above 0.44 US dollars started to show a bullish trend with the next target at $0.55 and $0.62. On the flip side, a return under 0.37 US Dollars can open the doors for much lower levels.
