23 May
Comments from JP Morgan on the “-40% drawdown in Cryptocurrencies”
- the third in four years
- but this time, it occurred in a $2trn asset class.
Despite the size of the sector JPM go on (bolding is mine):
- cross-asset consequences have been mild
- with less Equity/Credit drawdown than occurred during January’s meme-stock frenzy or February’s sell-off in Bonds
- As large and bubble-like as Crypto had become based on valuations, momentum and investor leverage, it’s not yet in the same category as the Nikkei (1980s), dot-com stocks (1990s) or sub-prime (2000s) in terms of household/corporate leverage and financial sector infestation.
- Huge wealth losses are always possible, but not necessarily systemic.
Meanwhile, BTC is recovering some of its losses over the weekend, off is lows as I post:
