JPMorgan Says Crypto Market Deleveraging Cycle Won’t Be Lengthy

JPMorgan says crypto market deleveraging cycle won’t be lengthy. The collapse of crypto hedge fund Three Arrows Capital indicates that the ramifications of this year's cryptocurrency market slump continue to reverberate, JPMorgan said in a report Wednesday. While it is hard to assess how much more deleveraging still needs to happen, its indicators suggest the process is already well advanced. Multiple failures among companies in the industry should not surprise given the backdrop of deleveraging and the 70% drop in digital asset market capitalization since November.