Crypto mortgage cycle will not take long

Crypto mortgage cycle will not take long

The Bankenriese JPmorgan assumes that the current debt -related chaos will soon come to an end in the markets for digital assets.

"Crypto companies with the stronger balance sheets are currently jumping to contain the infection," says a report of the company's strategists. According to the report, the financing by risk capital providers survived the turbulence and continued in a healthy pace in May and June.

Companies with a higher leverage are ultimately most vulnerable in the bear market, the strategists wrote. This included Bitcoin-Miner who had "made loans to expand the company with their bitcoins as security", hedge funds that "used futures to pry their positions", and small investors who "record money through margin accounts to invest in different cryptocurrencies".

One of the capital -based crypto companies that intervene to contain the damage is the FTX cryptocurrency exchange, which, according to reports in block works and other publications

Venture capital companies also seem to drive crypto investments. Andreessen Horowitz broke records last month when she collected a 4.5 billion dollar fund for crypto, and OP Crypto has reportedly just raised $ 100 million for crypto investments in the early phase.

Although it is difficult to assess how much further debt reduction still has to take place, Strategists from JPmorgan said: "Indicators like our metrics based on CME futures to indicate net debt level that this debt reduction has already been well advanced."

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The Post Crypto Delveraging Cycle "WITHOUND TO THE LOCE" is not a financial advice.