JPMorgan 'fears' Bitcoin value

JPMorgan ‘fears’ Bitcoin value


JPMorgan strategists are “concerned” about altcoins, which could see deeper declines if Bitcoin doesn’t rise above $60,000 soon, according to Bloomberg.

JPM Joins the Crypto Space

JPM experts considered it likely that traders, including commodity trading advisors (CTA) and crypto funds, have fallen behind in creating long BTC futures in recent weeks.

In recent times, the BTC futures markets have experienced strong liquidations, as in February and January of this year and in November of last year. “From here, the momentum signals will certainly decrease over the next few months, as they are still at an elevated level”б the strategists said. They added that on these earlier events, buyers prevented further declines, and the flow momentum was strong enough to allow BTC to break out of key thresholds.

The likelihood of a repeat of this scenario now seems less likely, “because momentum gains seem more advanced and therefore harder to reverse”, while inflows to BTC funds seem weak.

However, according to digital asset management company CoinShares, inflows into digital asset investment products almost tripled, to $ 233 million in the past week, while BTC posted the largest inflows at $ 108 million.

In January, JPMorgan strategists argued that the price of BTC could rise above its level at that point – $ 40,000-but the inflow to the Grayscale Bitcoin Trust (GBTC) would probably need to be maintained at $ 100 million a year for some time at a daily pace. But now JMP has decided to take the bull by the horns, and influence the crypto market itself.

JPMorgan May Launch a Bitcoin Fund This Summer

Times have changed, and for JPMorgan, BTC is no longer a fraudulent asset, but a new source of income that you will have to buy for your wealthy clients.

Thus, the bank may launch a Bitcoin Fund available to its customers as early as this summer. The custodian of the BTC funds will be the NYDIG institutional platform.

Many people remember the words of its CEO Jamie Dimon, who a few years ago actually called BTC a fraud, and even threatened to fire any employee who bought Bitcoin.

Thus, the decision to launch a Bitcoin fund is a surprising surprise, which illustrates the position of banks that were previously resistant to the crypto, and today are giving up under the pressure of demand from their customers.

JPMorgan is no exception, and therefore should offer investment products focused on Bitcoin, having previously announced the launch of a”basket of risky cryptocurrencies”. The basket will correspond to 11 reference shares, consisting of Class A shares or common shares of companies such as MicroStrategy, Square, PayPal, Silvergate, Riot Blockchain, CME Group.

The US banking giant has not yet confirmed the information about this Bitcoin fund, and has not responded to media requests.

Inevitably, this JPMorgan project is bound to see the light of day in the coming months as institutional investors continue to buy Bitcoin.

Same with PayPal, its CEO confirmed the high demand for BTC and other cryptocurrencies offered on its platform.

JPMorgan also studied the price of BTC, and predicts the price of Bitcoin at $ 130,000, and also recommends that investors allocate 1% of their portfolios to PTS.