JPMorgan Says Crypto’s Deleveraging Cycle Won’t Last Much Longer

Jun 30,2022
KingData News: The current phase of deleveraging in cryptocurrencies is at an advanced state and may not last much longer, according to JPMorgan Chase & Co. Multiple crypto company failures shouldn’t be surprising given huge price declines among tokens, and entities that used higher leverage in the past are the most vulnerable, strategists including Nikolaos Panigirtzoglou wrote in a note. The liquidity crunch at hedge fund Three Arrows Capital “is a manifestation of this deleveraging process,” they said. In addition, JPMorgan analyst Nikolaos Panigirtzoglou said, "The current deleveraging cycle may not be long given that crypto entities with good asset positions (e.g., FTX) are now stepping in to help defuse systemic risks in the market."
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