Investment bank JPMorgan is warning that cryptocurrency markets will experience limited upside in a publication last week.

The JPMorgan note pins stablecoins’ share of the total cryptocurrency market value as an indicator of serious price action.

In the note issued last week, JPMorgan analyst Panigirtzoglou explained:

“The share of stablecoins in total crypto market cap no longer looks excessive … This share currently stands below 7% which brings it back to its trend since 2020.

As a result we believe that any further upside for crypto markets from here would likely be more limited.”

Previously, when stablecoins’s share of the total crypto market cap was almost 10%, Panigirtzoglou said it “pointed to further upside for crypto markets.”

The analyst also notes that the March price rally of Bitcoin and Ethereum was largely due to financial sanctions imposed on Russia, following its invasion of Ukraine.

“These sanctions had raised expectations that cryptocurrencies will be used more extensively in the future to circumvent the traditional banking system given cryptocurrencies are not attached or depend on any government.”

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