Since 12 May 2021, the cryptocurrency market has been under tremendous selling pressure. In the past six weeks, nearly half of the market cap for digital currencies has been lost. The latest research note by JPMorgan, one the largest investment banks in the world, highlights signs of recovery in the cryptocurrency market.
A recent report by Bloomberg citing research notes by JPMorgan strategists Josh Younger, Veronica Mejia Bustamante states that the stability in the Bitcoin futures markets is a positive sign. The overall cryptocurrency market is still not healthy.
“The near-term setup can be challenging. The market is still likely to have an excess of underwater positions that must be cleared. The research note says that while the market is showing signs of being unhealthy, it appears to be starting to heal.”
Nikolaos Panigirtzoglou (Managing Director, Global Market Strategy, JPMorgan) stated earlier this month that there is very little institutional demand for Bitcoin. Panigirtzoglou stated that the price of Bitcoin must be below $30,000 to attract institutional investors in an interview with Business Insider.
Cryptocurrency Whales
The top cryptocurrency accounts have increased their transfer speeds in the face of market volatility since May 2021. A well-known Ethereum whale account transferred 81,760 Ethereum last week from a digital wallet into cryptocurrency exchange Binance. XRP whales also began moving the 7th largest cryptocurrency in the world from major digital exchanges. On Thursday, 24 June at 17:00 UTC, XRP wallet moved 26 million coins to a crypto wallet. The Bitcoin network also saw an increase in whale transactions in the past few days. Whale Alert, a blockchain tracking & analytics firm, has revealed that a top Bitcoin wallet transferred 2,395 Bitcoin to a digital wallet. The transaction’s total value is approximately $79 million.
