JP Morgan Suggests March 2024 as Possible Peak of Current Bull Market
- A JP Morgan report suggests March was the peak of the crypto market in value and volume, later declining by 24%.
- Increased selling pressure and events like Mt. Gox’s liquidation contributed to the market’s fall.
According to research shared with CoinDesk, JP Morgan said March of this year may have been the peak as far as crypto goes.
Related: Aussie Analyst Jason Pizzino Reveals Biggest Threat to Crypto Right Now
As per their analysis, the crypto market reached that peak period in terms of both market value and trading volume – they pointed to the subsequent decline in the market cap in June (and July), which supports their analysis of the peak.
Tokens, decentralized finance (DeFi) and non-fungible tokens (NFTs) all saw market cap contraction in June.
Data from TradingView shows that the total crypto market cap topped out in March at US$2.68 trillion (AU$3.97 trillion) and has since dropped almost 24% to US$2.04 trillion (AU$3.02 trillion).
Swissblock: “Selling Pressure Relentless”
Of course, by now most people would be aware that Mt. Gox and the German government’s sale of BTC have likely contributed to the decline in prices – although it’s disputed just how much of the recent drop is due to these factors.
However, while analysts from Swissblock said in a note that, “the selling pressure has been relentless”, they added that most of future Mt. Gox selling pressure is likely already priced in.
In late June, the Rehabilitation Trustee announced that it is set to begin repaying creditors in Bitcoin and Bitcoin Cash from early July 2024, following the completion of “necessary preparations” with cryptocurrency exchanges.
They added that repayments will proceed sequentially as each exchange’s details are finalised. One analyst said some may have to wait up to 3 months for their repayments.
JP Morgan’s Troubled Relationship with Crypto
JP Morgan CEO Jamie Dimon is known for his dismissive statements about Bitcoin and crypto. Dimon has called BTC a pet rock, compared it to smoking and has also said if he were in charge of the government he would just shut down Bitcoin.
On the flip side, in May news broke that the company has been accumulating Spot Bitcoin ETFs. While these funds have seen a broader adoption by financial institutions, the bank has said it doesn’t believe that any more such funds – aka altcoin ETFs – will be listed.
Related: Analyst Says Sale of Seized Bitcoin on Market Overstated: Don’t Let FUD Ruin Your Trades
JP Morgan’s managing director and global market strategist, Nikolaos Panigirtzoglou, said earlier that new funds are unlikely, based on the SEC’s stance regarding the status of most crypto assets as securities.