13.5 C
Manchester
October 4, 2022
Image default
Bitcoin

JP Morgan analysts criticize Bitcoin –

Analysts from the American investment bank JP Morgan Chase have released another skeptical statement about Bitcoin (BTC). As they claim, the current price of the cryptocurrency is much higher than the real value.

Analysts are critical about BTC

IN note to JP Morgan investors, analysts argued that cryptocurrencies such as Bitcoin are only “economic display of the site”And at the same time the worst hedge against a possible fall in share prices.

They also found that mainstreaming Bitcoin increases its correlation with cyclical assets, making it a less attractive asset for portfolio diversification.

Cryptocurrency assets continue to be the worst hedge against large drops in the stock market, with dubious diversification benefits (…)

– they stated.

Prior analysis

In turn, in January 2021, JP Morgan strategists John Normand and Federico Manicardi argued that Bitcoin is becoming a cyclical asset. This concept refers to those assets that follow a trend in line with a specific business cycle.

It is worth noting, however, that the question of whether Bitcoin is a cyclical or non-cyclical asset is still debatable. Many industry investors are firmly convinced that cryptocurrency is an excellent protection against a market crisis.

Interestingly, the latest comments from inside JP Morgan came shortly after Daniel Pinto, the company’s co-president, said the bank would eventually have to commit to the Bitcoin market amid rising customer demand:

If an asset class develops over time that will be used by different asset managers and investors, we will need to be involved […]. Demand is not there yet, but I am sure there will be one at some point.

In October 2020, when Bitcoin was priced at around $ 13,000, JP Morgan reported that the price of the digital currency would double or triple, but in the long run.

At the time of writing, Bitcoin costs $ 52,500, an increase of over 70%. in the last 30 days. After breaking the $ 50,000 price tag on February 16, Bitcoin briefly hit a new all-time record above $ 53,000.

Related posts

Kate Winslet will play in the movie about OneCoin –

Aparnna Hajirnis

Are institutions that haven’t announced Bitcoin purchases still buying?

Anupreet Kaur

El Salvador recognized BTC as a full-fledged means of payment –

Aparnna Hajirnis

Leave a Comment