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JPMorgan Says It 'Appears Crypto Markets Have Found a Floor' as Bitcoin Crosses $24k

August 8, 2022 8:03 AM

Bitcoin (BTC) is up over 4% today to see its price go above the $24,000 mark for the first time in the last 7 days. The world’s largest cryptocurrency has been making continued higher lows, indicating it is ready to break above the $25,000 handle for the first time since mid-June.

On what is helping crypto prices to increase after a mouth-watering drop of 75% since November last year, JPMorgan analyst Kenneth Worthington says:

“What has helped, we think, has been more limited new contagion from the collapse of Terra/Luna. However, we think the real driver has been the Ethereum merge and positive data following the launch of the Sapolia testnet in early July and Ropsten testnet in June, indicating the merge is viable in 2022,” Worthington said in a client note.

The Ethereum Merge is expected to be in September 2022 and will see the second-largest digital asset shift from the energy-intensive proof-of-work consensus mechanism to a more efficient proof-of-stake system.

Worthington adds that “it appears that the crypto-markets have found a floor” despite trading volumes still being depressed. In this context, the analyst notes that Coinbase lost ground to FTX in July.

By Senad Karaahmetovic

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