Bitcoin will continue to exist only as a speculative asset, according to JPMorgan

Bitcoin will continue to exist only as a speculative asset, according to JPMorgan

Bitcoin will continue to exist only as a speculative asset, according to JPMorgan

Analysts at the JPMorgan Chase financial holding believe that during the March financial crisis, bitcoin performed well as a stable asset, but in terms of stability and usefulness, it is still far from gold and fiat..

In a note for investor clients dated June 11, the bank’s analysts reported that recently the BTC has changed the status of an uncorrelated asset to an instrument, the rate of which more or less depends on the stock market, which makes it possible to better predict its dynamics. The JPMorgan team also notes the growth of bitcoin liquidity and high resilience in the face of the crisis.

In addition, in the document circulated said that after a major price drop in March, the cryptocurrency was able to recover much faster than other asset classes. Currently her performance is above the average level of the last 12 months, which cannot be said about traditional instruments.

Based on this the bank’s researchers concluded that BTC successfully passed its first stress test and performed well as a speculative asset. However, it never became a digital equivalent of gold or a safe haven for investors during the storm in the market, so it is unlikely to face future success as a store of value or exchange..

The speculative nature and high level of risk in the market can contribute to a significant appreciation of Bitcoin, which, according to analysts  Bloomberg, by the end of the year may exceed $ 20 thousand.

text: Ivan Malichenko, photo: omlook

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