JPMorgan Sees Limited Upside For Cyptos As Stable Coins Dip: Report

Global investment bank JPMorgan has reportedly warned that any upside for cryptocurrency markets would likely be more limited, basing its prediction on the relationship between stablecoins and the rest of the crypto market.

According to a note shared with Market Insider last week, JPMorgan analyst Panigirtzoglou said, "The share of stablecoins in total crypto market cap no longer looks excessive … This share currently stands below 7% which brings it back to its trend since 2020."

"As a result we believe that any further upside for crypto markets from here would likely be more limited," he said.

Panigirtzoglou further said that the price of Bitcoin and Ethereum rallied early in March following financial sanctions imposed on Russia by Western countries after its invasion of Ukraine.

“These sanctions had raised expectations that cryptocurrencies will be used more extensively in the future to circumvent the traditional banking system given cryptocurrencies are not attached or depend on any government," he said in the note.

In February, JPMorgan predicted that the long-term price of BTC would reach $150,000 under the circumstances where Bitcoin’s market capitalization was actually on par with gold’s current market cap at that time.

Bitcoin was trading at $46,241, 0.39% lower, as of 2.49 a.m. ET, CoinMarketCap data showed. The global market cap was down 0.08% at $2.16 trillion.