Yeah, you read Right. JPMorgan, one of the biggest and longest running banks on Wall Street, seems to have openly changed its mind about Bitcoin. Why?
Jamie Dimon: Bitcoin is a „fraud“
Bitcoin’s market structure is stronger
Since Black Thursday, Bitcoin has made an excellent recovery. Behavior that has been recognized by JPMorgan analysts, suggesting that BTC has „longevity as an asset class.
On Friday, a report was published titled „Cryptomoney performs its first test of resistance: digital gold, pyrite or something in between“ written by Joshua Younger and Nikolaos Panigirtzoglou, analysts at JPMorgan.
As reported by Bloomberg, the report analyzes the behavior of Bitcoin, crypto-currencies and other financial assets after they sank in March when the pandemic began.
Certainly, Bitcoin suffered the consequences of the Coronavirus, however, it managed to recover much faster than other asset classes.
In addition, analysts acknowledged that Bitcoin’s ratings did not differ much from the intrinsic levels during the March panic.
„The structure of the crypto market proved to be more resilient than that of currencies, stocks, treasury bonds and gold,“ wrote JPMorgan & Chase Co. in its analysis.
However, the report noted that „price action (by Bitcoin) points to its continued use more as a vehicle for speculation than as a means of exchange or safeguard of value.
But, even so, analysts say they found „little evidence of execution dynamics, or even material quality levels among the crypt coins, even during the times of crisis in March,“ suggesting that Bitcoin withstood its „first stress test“ well.
JPMorgan accepts Coinbase and Gemini as clients
BTC is praised
Bitcoin does not need advertising or promotion, it stands out on its own. It is the main crypt currency of the market, yes, but it has demonstrated its value by being revalued almost 100% today after Black Thursday.
Clearly, such behaviour has caused more people and institutions to set their sights on it. Some who were once skeptical are now faithful believers.
The case of JPMorgan is very revealing that it is now starting to take more and more steps in the crypt world. In fact, earlier this month, we recall that the bank signed Coinbase and Gemini as clients.
We’ve said it before, but we’re taking it up again, Bitcoin’s here to stay and JPMorgan seems to have noticed. What do you think?