Multinational Investment bank JP Morgan says that the crypto market rebound could be losing momentum with a decline in the stablecoin market share.
Source: Markets Insider
BTCUSD is down -0.02%
The bank sees the declining market share of stablecoins as a hindrance to any further rally in cryptocurrencies, with the assets representing ready funds to be channeled to crypto.
JP Morgan notes that Bitcoin and Ether have jumped over 30% from the levels recorded in February, with bitcoin receiving a boost from about $210 million inflows from the Purpose Bitcoin ETF since March 7.
The institution’s analysts also observe that the short covering has been more in Ethereum than in Bitcoin recently, which has driven the futures to the overbought level.
Bitcoin, ether, and most altcoins set on a rebound following the economic sanctions against Russia from the Western countries.
The bank noted that the sanctions were expected to boost the use of cryptocurrencies, which are a form of decentralized currency alternatives.