Yes, you read it right. JPMorgan, one of Wall Street’s largest and longest running banks, appears to have openly changed its mind about Bitcoin. Why?
Bitcoin’s market structure is more resilient
Since Black Thursday, Bitcoin has decanted with an excellent recovery. Behavior that has been recognized by JPMorgan analysts, suggesting that BTC has “longevity as an asset class”.
In this regard, on Friday a report entitled “The cryptocurrency performs its first stress test: digital gold, pyrite or something in between?” written by Joshua Younger and Nikolaos Panigirtzoglou, analysts at JPMorgan.
As reported by Bloomberg, the report looks at the behavior of Bitcoin, cryptocurrencies, and other financial assets after they sank in March when the pandemic started.
Certainly, Bitcoin suffered the consequences of the Coronavirus, however, it managed to recover much faster than other asset classes.
Furthermore, analysts acknowledged that Bitcoin’s valuations did not differ much from intrinsic levels during the March panic.
“The structure of the crypto market turned out to be more resilient than that of currencies, stocks, Treasuries and gold”JPMorgan & Chase Co. wrote in their analysis.
However, the report noted that “(Bitcoin’s) price action points to its continued use more as a vehicle for speculation than as a medium of exchange or store of value.”
But, even so, analysts point out that it was found “little evidence of execution dynamics, or even material quality levels among cryptocurrencies, even during times of crisis in March ”, suggesting that Bitcoin well weathered its “First stress test”.
BTC is praised
Bitcoin does not need advertising or promotion, it manages to stand out on its own. It is the main cryptocurrency on the market, yes, but it has demonstrated its value by having appreciated almost 100% as of today after Black Thursday.
Obviously, this behavior has caused more people and institutions to set their eyes on it. Some who were skeptical at the time are now faithful believers.
The JPMorgan case is very revealing that it is now beginning to take more and more steps in the crypto world. In fact, at the beginning of the month, let’s remember that the bank signed Coinbase and Gemini as clients.
We have said it before but we take it up again, Bitcoin is here to stay and JPMorgan seems to have noticed. What do you think?
Related news
