Can a stock strategy work on a crypto as well?

Following the great decline of BTC a few weeks ago, it has never been easier to make money on the crypto market. JP Morgan analysts say the same about the stock market based on one key strategy. Could the same strategy that an investment firm advocates for stocks work well in cryptospace?

JP Morgan: It has never been easier to make money

When the pandemic first hit early 2020, markets erupted in instability and panic. The stock market collapsed, as did everything else in the financial world. Bitcoin, which was about to penetrate the new bull market, collapsed back to $ 3,800.

Markets have recovered strongly since then. Tech stocks pushed the Nasdaq to new highs, while the other major stock indices of the Dow and S&P 500 withdrew. With the economy returning to normal and stimulus money flooding the market, the analyst says “it has never been easier to make money.”

Eduardo Lecubarri, JP Morgan’s global director of small and medium equity strategy, explains that one in five small or medium equities is still down 30 percent or more. He expects these assets to stop falling behind and recover, as are large companies.

Other analysts have described recent rallies, which jump from one asset or index to another, a sign of a “big rotation” of capital – something that is also happening in cryptospace. But could the same JP Morgan strategy work to make more money in the crypto?

Can stock market strategy make big money in BTC and crypto?

In addition to the overall market cycle of cryptocurrencies, Bitcoin and altcoins also go through their own cycles. Major cryptocurrencies such as Ethereum, Ripple and Chainlink have broad capital flow and growth. They leave a lot of small and medium altcoins behind. Some categories, such as DeFi, are an exception, otherwise most attention is paid to Bitcoin and the top ten.

Only now, as JP Morgan suggests, what is happening in stocks, investors are realizing that there are a lot of small and medium-sized altcoins that are still falling by 99% or more from previously high prices.

Bitcoin is triggering a new upward trend rather than just recovering from a pandemic.

Bull runs often start with the altcoin season, which leads to a profit from BTC. It is this flow of capital to BTC that will cause it to grow and FOMO to prosper. As we saw recently, in the end, bitcoin rallies and profits flow back into the main altcoins.

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