JPMorgan crypto analyst Nikolaos Panigirtzoglou said that the surge in altcoin projects will not continue and bears the repercussions of the market crash in May. The expert also questioned the price increase of cryptocurrencies such as Bitcoin (BTC) as well as Cardano (ADA). During this period, altcoins have risen sharply in recent weeks in hopes that they will be widely used in DeFi and NFTs. The explanations of Panigirtzoglou and the analyzes of Curtis Ting, who had different views, were as follows…

Nikolaos Panigirtzoglou, why does he think so?

According to Nikolaos Panigirtzoglou, the recent surge in altcoin projects may be unsustainable and lead to the kind of crypto crash seen in May. ADA, BNB, SOL, and other altcoin projects have begun to see record requests over the past few weeks, as excitement builds around the potential uses of DeFi and NFTs. Most major altcoins can hold their profits sharply for the month, even after the crypto market saw a steep sell-off on Tuesday and another wobble on Friday.

However, according to Nikolaos Panigirtzoglou, a global market strategist at JPMorgan, the rally does not look sustainable, largely due to unrealistic expectations regarding cryptocurrencies. “There is a big question mark here,” Panigirtzoglou, the bank’s crypto expert, said last week.

Are Cardano, Binance, Solana, and other altcoin projects as alternatives to Ethereum justified? Will there be enough traffic on these networks (and) wallet addresses to justify such considerations?

Bitcoin (BTC) May crash could be repeated, according to analyst

According to Panigirtzoglou, the crypto market appears to be in a “meltdown” phase with investors flocking to emerging cryptos to reap some gains. He thinks that such a phase often precedes a sharp decline. On this issue, Panigirtzoglou said, “I think we can repeat what we saw in May.” That month saw the crypto market crash, including Bitcoin and Ethereum, after a rally in which the prices of altcoins such as Dogecoin and XRP skyrocketed.

Similarly, altcoins have risen sharply in recent weeks, with Solana up 318% in 30 days by Friday morning, according to data from CoinGecko. Cardano’s cryptocurrency ADA was up 29% over the same period, while XRP was 23% higher. Now, individual investors are attracted to certain cryptocurrencies in networks, which they expect will challenge the widespread use of Ethereum in the fast-growing DeFi and NFT fields.

Cryptocoin. com DeFi projects are the use of crypto technology to eliminate the need for intermediaries in financial contracts, and NFTs are the burgeoning crypto class of crypto collectibles and artworks. For this industry, Bobby Ong, co-founder and CEO of CoinGecko, said the excitement was “absolutely overstated”. Bobby Ong interprets this as a typical crypto cycle:

Investors pile on Bitcoin first, then turn to highly volatile alternatives in search of more returns before a crash causes people to leave the market and eventually start buying Bitcoin again.

JPMorgan Analyst sees similarities with Bitcoin (BTC) 2018 crash

Panigirtzoglou said he saw some similarities with the 2018 crypto crash that preceded a surge in altcoins, which resulted in Bitcoin losing more than 80% of its value. Still, he added that it is unlikely that the crypto market will crash so hard again, as financial institutions like Tesla and large corporations have bought out. However, there are opinions against Panigirtzoglou. Curtis Ting, managing director of Europe at crypto exchange Kraken, does not see the rise in altcoins as a red flag. He said that a sharp sell-off in cryptos of the type seen on Tuesday “helped the market reset the ken.” Curtis Ting’s analyzes were:

A surge in altcoins is helping to diversify the crypto class and create a feedback loop that could ultimately benefit the Bitcoin price.

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Michael Lewis


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