JPMorgan Chase & Co. claims that the current stage of cryptocurrency deleveraging is advanced and might not endure for very long.
Given the sharp decline in token prices, “the multiple collapses of crypto firms should come as no surprise, as this is a deleveraging process,” the bank’s strategists noted.
Venture capital fundraising efforts continue
With analytics provider Kaiko obtaining $53 million this week and cryptocurrency exchange FTX apparently investigating acquisitions as well as offering lines of credit to some businesses, analysts believe VC fundraising attempts are still active.
According to JPMorgan, cryptography is now responsible for a sizable portion of the issues. According to strategists, indicators like corporations’ net leverage show that deleveraging is already well underway.