Experts: further crypto rally is limited

Specialists of the investment bank JPMorgan believe that the value of cryptocurrencies has limited growth potential, since the share of stablecoins in relation to the general cryptocurrency market is falling: instead of 10%, it is already 7%. Stablecoins are treated here as cash that can be used to buy cryptocurrencies.

The current BTC quote is $45,428.30, while the price of Ether is $3,339.95.

The bank noted the recent rally in bitcoin and ethereum, which began in early March. The driver of growth was the assumption that under the current conditions of sanctions against Russia, cryptocurrencies will be used more widely. Because they can bypass the traditional banking system, as they are not tied to or dependent on any government.

Now, however, the cryptocurrency rally is coming to an end as stablecoins are rapidly declining their share of the cryptocurrencies. In early March, Bitcoin and Ethereum were up over 30% from their February lows. However, since then, the share of stablecoins in the total cryptocurrency market capitalization has fallen to 7%, which returns the market to the trend of 2020.