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October 4, 2022
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JPMorgan co-chairman admits demand for Bitcoin will arrive “at some point”

What kind of demand for Bitcoin would be enough for JPMorgan?

In a conversation with CNBC about Bitcoin, JPMorgan co-chairman Daniel Pinto said that demand for Bitcoin will arrive “at some point”. Although the message seems ostensibly optimistic, Pinto is implying that demand for Bitcoin has not yet arrived.

Bitcoin’s price has increased almost fivefold since October, in just four months. In the process, the volume on centralized exchanges exploded, while institutional platforms and vehicles like CME’s Bitcoin futures market and Grayscale’s Bitcoin Trust registered record volume.

Still, Pinto noted that demand for Bitcoin is not “there yet”, suggesting that it would have to grow further to have large investment banks, like JPMorgan, to get involved. He said:

“If, over time, an asset class develops that will be used by different asset managers and investors, we will have to be involved. The demand does not yet exist, but I am sure it will exist at some point. ”

But the point where asset managers and investment banks would consider dealing with cryptocurrencies seems to be approaching.

For example, on February 11, Roman Regelman, CEO of asset services and digital head of BNY Mellon, said the bank would soon offer Bitcoin services.

In a statement obtained by CNBC, Regelman said:

“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets. The growing customer demand for digital assets, the maturity of advanced solutions and the improvement of regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field. ”

Before BNY Mellon’s surprising decision to facilitate crypto assets, Mastercard, a giant of credit card payments, said it would allow its customers to use certain cryptocurrencies in the future.

While not all banks, institutions and financial companies can find cryptocurrencies as an established asset class at this time, there are many financial conglomerates that do.

Therefore, from the point of view of conventional adoption, the continuous improvement in appetite to serve and facilitate services related to cryptocurrencies is highly positive.

Is this impacting the price of BTC?

In the past two days, almost as soon as news from Mastercard and BNY Mellon was released, Bitcoin has rebounded strongly to a new historical record.

Bitcoin 15-minute price chart. Source: BTC / USD at TradingView.com

The positivity surrounding traditional financial companies that support cryptocurrencies is clearly increasing market sentiment around BTC and crypto assets in general.

If the tendency of public companies to accumulate Bitcoin or support the dominant cryptocurrency continues, it would likely increase the price of BTC beyond the main areas of resistance.

Before news of BNY Mellon broke, BTC was stagnating below $ 44,000, struggling to rise.

Bitcoin, currently ranked first by market cap, has fallen 0.95% in the past 24 hours. BTC has a market capitalization of $ 886.53 billion, with a 24-hour volume of $ 83.39 billion.

Source: CryptoSlate

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