The historic deleveraging of the crypto currency market is reportedly going to be eliminated, which is a sign of the end for one of the most turmoil bear market, per a JPMorgan analyst.

Specifically, JPMorgan strategist Nikolaos Panigirtzoglou reportedly emphasized the rise in willingness of establishments to bail out firms, as well as a healthy trend of venture capital funding in May and June as the what gave him reasons to feel optimistic.

“Indicators like our Net Leverage metric suggest that deleveraging is already well advanced.”

The deleveraging of top-tier crypto entities, where their assets have been sold either willingly, in a rush or through liquidation, started mostly in May when the Terra ecosystem suffered a fall and caused billions of dollars of financial damage. Since then, crypto lenders BlockFi and Celsius as well as investment entity Three Arrows Capital have faced different kinds of issues.

Panigirtzoglou further claimed that the severity of deleveraging of a few crypto establishments could be so severe that they “suggest that the tremors from this year’s crypto market fall continue to reverberate.”

Nonetheless, per Panigirtzoglou, deleveraging may be seeing an elimination, as crypto entities are reaching out to bail out struggling firms. 

“The fact that crypto entities with the stronger balance sheets are currently stepping in to help contain contagion.”

During the time when catastrophe strucking numorous blockchain companies like Three Arrows Capital and Celsius, Sam Bankman-Fried’s FTX exchange is reportedly setting to widen the scope of its influence throughout the sphere. 

FTX is reportedly rumoured to have plans down its pipeline to set an acquisition deal for the BlockFi crypto lending platform for $25 million. Nonetheless, Head of BlockFi, Zac Prince, has denied the rumors in a Thursday tweet.