Bitcoin (BTC) and altocinlwith a general rise in the BTC While exceeding the psychological limit of $ 20,000, the cryptocurrency market also exceeded $ 1 trillion.
Although investors are hopeful of this rise, the US banking giant JP Morgan a longer time in the future cryptocurrency warns of possible decline.
JP Morgan Chase & Co. In the report, written by analyst Nikolaos Panigirtzoglou, the financing of companies in the crypto money sector is 10 billion dollars per year.
This figure corresponds to one-third of last year’s funding.
Noting that the financing of crypto VC firms fell to $ 4.4 billion in the third quarter of 2022, the JP Morgan analyst cited monetary tightening and other macro factors among the reasons for this.
The analyst used the following statements on this subject:
“Amid monetary tightening in the face of rising inflation and other macro factors, demand for risky assets like cryptocurrencies has dropped significantly.
This demonstrates the reluctance of VC funds to place capital in the digital asset space.
We also think this is a worrying development as it raises the possibility that the current weakness in the crypto markets is long-lasting.”
Lastly, the JP Morgan analyst said that as banks enter the crypto space, they will have to prioritize consumer protection. Recently, banks have been approaching the crypto industry to make their financial services more affordable and efficient.
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