Bitcoin News- The third quarter of this year saw a record low of $4.4 billion in venture capital financing.
- Coinbase said that it does not anticipate a rapid recovery in the cryptocurrency market.
Although the total value of the cryptocurrency market has risen to over $1 trillion in recent weeks, JPMorgan has advised of warning indicators pointing to a prolonged crypto downturn.
The current outlook is in light of the rapidly diminishing availability of venture capital in the cryptocurrency market. On Thursday, Nikolaos Panigirtzoglou, Managing Director of Global Market Strategy at JPMorgan Chase & Co., estimated that the annual capital for the cryptocurrency industry is $10 billion. This is just a third of the level recorded in the previous year.
Tough Times Ahead
The third quarter of this year saw a record low of $4.4 billion in venture capital financing for cryptocurrencies. As a result of macro variables like monetary tightening, investors have lost interest in risky assets.
The JPMorgan team reported:
“This is a concerning development as it shows reluctance by VC funds to deploy capital into the digital-asset space, increasing the likelihood that the current weakness in crypto markets would be long lasting”.
Coinbase, a cryptocurrency exchange, also released its quarterly numbers on November 3rd, revealing a net loss of $545 million. The business said that economic headwinds, as well as the downturn in the crypto market, had a significant effect on transaction revenue.
Coinbase said that it does not anticipate a rapid recovery in the cryptocurrency market from present levels. In Thursday’s trade, COIN shares fell another 8%, closing at $55.80. The price of COIN stock has dropped by 85% in the last 12 months.
Moreover, JPMorgan said that banks must put customer safety first when exploring cryptocurrencies. Recently, banks have been getting closer to the crypto business in an effort to improve the accessibility and efficiency of their financial services.
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Source: https://thenewscrypto.com/jpmorgan-hints-prolonged-crypto-winter-amid-decline-in-vc-funds/