According to JP Morgan, the bear market will end soon

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"The Bear Market Won't Last Long"

Several JPMorgan financial strategists believe that the current bear market has reached an advanced stage and will end soon. Bloomberg he cited a report written by JPMorgan strategists, led by Nikolaos Panigirtzoglou. They said that the recent decline in the cryptocurrency market is a manifestation of the deleveraging process.

"Indicators such as our Net Leverage metric indicate that deleveraging has already made significant progress."

The deleveraging of major crypto firms, whose assets were sold either voluntarily, in a rush, or through liquidation, largely began in May. He added that due to the seriousness of the deleveraging of some crypto firms, the shocks from this year's crypto market slump may continue to reverberate.

According to him, however, sthe current deleveraging cycle will no longer last long. He pointed out that one of the reasons for this prediction is the fact that other crypto firms with "stronger balance sheets" are coming in to help bring this phase under control.

The analyst was apparently referring to the FTX exchange's intervention in BlockFi's problems. The exchange helped BlockFi with a $250 million emergency loan to help the firm "navigate the market from a position of strength" and is evaluating other firms it intends to help. The Binance exchange expressed itself in a similar vein a few days ago.

The forecast was also influenced by the fact that venture capital financing was not significantly affected by the current market situation. Despite the crypto winter, funds totaled around $5 billion from May to June.

How long will it take for the BTC price to return to $28k?

Analysts at JPMorgan are optimistic about the cryptocurrency market. At the same time, Deutsche Bank analysts are more rational. They predict that the price of Bitcoin will not return to $28,000 until December 2022.

In a report, Deutsche Bank analysts attempted to predict the future of Bitcoin. He claims that the crypto market will follow the Nasdaq and the S&P 500 from the end of 2021. And as the S&P 500 is expected to recover to January levels, the price of Bitcoin will also begin to recover.

However, there are also market analysts who believes that the US stock market has not bottomed yet.