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☆ J.P.Morgan sees global bond yields dipping in 2023
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: +1 min

Nov 25 (Reuters) - Global bond yields will likely fall slightly in 2023 as the balance between demand and supply will improve by $1 trillion, strategists at J.P. Morgan said in a note. There will be a $700 billion contraction in global bond demand next year compared to 2022, while bond supply will likely drop by $1.6 trillion, J.P. Morgan strategists, led by Nikolaos Panigirtzoglou, estimated in the note issued on Thursday. "Based on the historical relationship between annual changes in excess supply and the Global Aggregate bond index yield, a $1 trillion improvement in the demand/supply balance would imply downward pressure on Global Aggregate yields of around 40 basis points," the Wall Street bank said. J.P. Morgan said that while major central banks trimming their balance sheets in 2022 was the single largest contributor to deterioration in bond demand, sell-offs by commercial banks and retail investors were also much higher than estimates. This year was one of the worst for bonds in history.

Even though more than half the money ever invested in bitcoin would now be underwater if it had stayed, crypto monitors insist it's somehow still attracting punters. Cryptocurrency and bitcoin investors seem to be showing few signs of dumping their crypto-related assets, stocks and exchange-traded funds (ETFs), despite the latest wave of turmoil and scandal to crash over the sector. Analysts at JP Morgan estimate that around $25 billion has flowed out of the crypto since May. He estimates that the stablecoin market cap peaked at around $170 billion earlier this year and has declined by around $25 billion since May. That is, $25 billion of redemptions flowing out of crypto, most likely to fiat currency, perhaps cash or cash-like products.

☆ Premarket stocks: Crypto is in crisis. It's not just because of FTX
▼ + stars: | 2022-11-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —The stunning downfall of FTX, one of the largest cryptocurrency exchanges, sent shockwaves through the crypto universe last week. Sam Bankman-Fried, the 30-year-old crypto titan and chief executive of FTX, watched billions of his fortune evaporate in a bankruptcy filing that shook the trillion-dollar industry to its core. Those efforts mean capital is drying up – and that’s not just bad for crypto but other asset classes including stocks, too. Cryptocurrencies enjoyed huge injections of money during the pandemic era thanks to the Federal Reserve’s easy money policy. “In all, the slowdown in global money growth looks set to continue over the coming year, with some contraction looking likely in the US,” wrote JPMorgan strategist Nikolaos Panigirtzoglou in a note.

☆ JPMorgan says FTX collapse fallout could cut the value of cryptocurrencies in half before it's over
▼ + stars: | 2022-11-10 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +3 min

The tumult stems from the potential collapse of crypto-exchange FTX, which was in the process of being acquired by Binance, amid a liquidity crisis. On Wednesday, Binance backed out of the deal, leaving FTX near collapse. At the end of this latest deleveraging cycle, the asset class could see its value cut in half. "A production cost of $13k implies 25% downside from here which would bring the crypto market cap to a low of $650 billion," said Panigirtzoglou. This will be with the goal to safeguard client assets, limit asset concentration and create more diligent risk management, including counterparty risk among crypto market participants.

☆ The FTX fiasco could spark an industry meltdown - and slash bitcoin's price by 25% to $13,000, JPMorgan strategists say
▼ + stars: | 2022-11-10 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

FTX's financial woes are likely to transform the crypto industry, JPMorgan strategists said. Bitcoin could plunge 25% to $13,000, and crypto firms might act more carefully in future, they said. "The number of entities with stronger balance sheets able to rescue those with low capital and high leverage is shrinking within the crypto ecosystem," the JPMorgan strategists said. "With the crypto market cap standing at just above $1tr before the FTX/Alameda Research collapse, our guess is that the crypto market will find a floor above $500bn in the current deleveraging phase," they added. Commentators have warned about dangerous amounts of debt and excessive risk-taking in the crypto industry before.

☆ Ether is down almost 20% since the merge. Here’s what’s going on
▼ + stars: | 2022-09-23 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +4 min

Twice during the week, as bitcoin dipped below the $19,000 level, ether hovered at $1,300 (about 70% below its all-time high). Many expected the merge to be a buy-the-rumor/sell-the-news event, and there are growing concerns in the crypto community about the post-merge Ethereum. Ahead of the merge, many investors were buying spot ether and shorting ether perpetual futures , in order to get tokens of the "forked" version of Ethereum for free, without the ether price exposure. Growing concerns Ahead of the merge, there were two main concerns the crypto community had begun exploring. "It looks like Ethereum Classic has been the main beneficiary post merge," JPMorgan's Nikolaos Panigirtzoglou said in a note this week.

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