One of the largest US banks, JPMorgan Chase, has thoroughly analyzed the March market collapse. Quite a lot of space in the report is devoted to Bitcoin. According to analysts, the BTC market is clearly maturing, they also see a strong correlation with global stock markets.
JPMorgan is positive about Bitcoin
The sudden collapse of markets in March 2020, caused by the global COVID-19 pandemic, has become the object of research for many analysts from around the world. Specialists from JPMorgan, cited by Bloomberg, confirm that “Bitcoin came out relatively unscathed“From March inheritances.
Well-known analysts developing the strategy for the bank, such as Joshua Younger and Nikolaos Panigirtzoglou, said that the survival of the crisis in March 2020 confirmed “BTC’s longevity as a class asset“.
The bank’s narrative compared to the most popular cryptocurrency clearly changes to positive. Not so long ago, the president of the American giant Jamie Dimon called the BTC “fraud“. Although a few days after the unfortunate words, he apologized to the community gathered around the oldest cryptocurrency but the disgust remained.
For several weeks we have been observing a surprising turn in the assessment of Bitcoin by JPMorgan, which according to unofficial sources buys BTC.
Another signal confirming a 180-degree return is the May message about the bank’s service of clients, the two largest US cryptocurrency exchanges: Coinbase and Gemini.
The report reveals BTC’s weaknesses as assets
The report also did not go without stigmatizing the weaknesses of the Bitcoin market. First of all, attention was paid to large fluctuations of chickens of the vast majority of cryptocurrencies. Opinion about ‘use [Bitcoina] more as a tool for speculation than as a means of exchanging or storing value. “, is shared by many professional traders.
On the other hand, many of them benefit greatly not only from BTC increases but also declines. Market volatility is somewhat attractive. As the volume increases, it decreases, but increases when the order book loses weight.
The report reveals the correlation of Bitcoin with more risky assets, such as stock shares. As an example, analysts cite Thursday’s declines in traditional and cryptocurrency markets. In this regard, they pointed out that Bitcoin correlates more with the stock market than with gold.