JPMorgan Says Crypto Market Deleveraging Cycle Won’t Be Lengthy
— Bank said, Miners, Market, Deleveraging, Vulnerable, Cycle, Invest even, Entities, Expand operations using, Lever — 1 min read
The entities that employed higher leverage in the past are now the most vulnerable, the bank said. Miners, hedge funds and hedge funds are using futures to lever their positions. Retail investors are borrowing via margin accounts to invest in various cryptocurrencies, it said. MicroStrategy (MSTR) has borrowed heavily into bitcoin to invest even more heavily into the bitcoin market, it added. The bank said the entities that borrowed heavily in bitcoin are now most vulnerable in the market. It said: “Whether it is miners having borrowed to expand operations using their bitcoin as collateral, or corporates such as Microstrategy having borrowed heavily, they are now more vulnerable’s leverage is now more likely to be affected.” The bank added Source