In his new research note, JPMorgan analyst Josh Younger wrote that the cryptocurrency market remained “healthy” despite a gargantuan correction, Bloomberg’s Joe Weisenthal reports.
Still, he did mention that the market’s depth had declined following a string of liquidations.
Younger also noted that extreme volatility was mainly limited to North America.
On May 19, Bitcoin tanked to $30,000, enduring its worst collapse since the pandemic-driven crash in March 2020.
January 2018 parallels Nevertheless, Younger noticed similarities between January 2018 and the current market downturn.
Particularly, he pointed to the rapid rise of highly risky non-blue chip cryptocurrencies.
Weisenthal has commented that growing institutional adoption might prevent another bear cycle.