Crypto recovery may be on its way: JP Morgan Chase
According to a report from BNN Bloomberg, strategists from JPMorgan have noted that the ongoing cryptocurrency crisis or share leverage has reached an advanced stage and recovery may be on the way.
Companies with higher influence are more vulnerable to infection
Strategists from JPMorgan noted on Wednesday that the ongoing crypto infection that has seen the bankruptcy declaration from at least one VC may stop soon, they added that the recent events are not shocking because it is expected when the price falls sharply.
They also pointed out that firms that used higher influence in the past are more vulnerable to infection, citing Three Arrows Capital as an example, the strategists who included Nikolaos Panigirtzoglou described the firm’s liquidity problems as a sign of “this downsizing process”.
Furthermore, they continued, another indication that this devastating pattern may hit a dead end soon is the support siege firms are receiving from stronger companies. FTX has provided credit facilities to a few affected crypto firms, and investors have shown no interest despite the decline.
The entire crypto area has suffered massively during this time, and the market value of crypto has fallen from a previous peak of $ 3 trillion to less than one trillion. However, the strategists firmly believe that the worst has passed and that the industry may well be on the road to improvement.
FTX allegedly withdrew from entering into an agreement with troubled crypto lender Celsius
According to The Block News, two insiders said that FTX was in talks with Celsius to reach an agreement on providing a credit facility or acquiring the latter, but FTX left after seeing Celsius’ financial status.
Celsius’ legal advisers have reportedly recommended that the company file for bankruptcy. However, Celsius has resisted and continues to ask for support from its clients to combat the legal recommendation.
One of the sources told The Block that Celsius had $ 2 billion that was not accounted for in the balance sheet, and FTX found the company difficult to reach an agreement with. The company’s customers do not have access to their funds until now. Celsius declared 1.7 million customers and around $ 12 billion in AuM in May.
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