According to a Business Insider story, JP Morgan stated on Monday that the recent gains in bitcoin and ether signal that the price of cryptocurrencies has reached their floor value.
According to data from CoinMarketCap, Bitcoin and Ether have increased 36 percent and 102 percent, respectively, from their mid-June lows, and the whole market value of cryptocurrencies has recaptured the crucial $1 trillion milestone.
Key Highlights:
- JPMorgan stated in a note on Monday that cryptocurrency prices may have “reached a floor” recently.
- From its mid-June low, bitcoin has increased by 36%, while ether has risen by 102% during the same period.
- In an article, JP Morgan said, “We think the real driver has been the Ethereum merge and positive data… indicating the merge is viable in 2022.”
According to the report, the “Ethereum Merge,” which aims to “transfer the ethereum blockchain away from a proof-of-work network and instead to a proof-of-stake system,” may be the main factor driving this increase. This is because the latter is seen as faster and more efficient in terms of energy consumption when mining. This comes after successful testnets for the Ropsten and Sapolia projects in June and July, respectively.
Even if ether is seeing a solid comeback, there is still a long way to go until it, and the larger crypto market is back to its previous highs. According to JPMorgan, daily trading volumes in NFTs have fallen by 84 percent over the past year, and crypto trading volumes continued to decline in July.
In the long run, as cryptocurrency investors seek a much-needed boost in confidence, the market recovery of cryptocurrencies may ultimately depend on the imminent Ethereum merger.
