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JP Morgan has doubled its critics on Bitcoin (BTC) and Crypto in general in a recent report badyzing emerging markets. In this report, badysts at the financial institution made many statements about the markets, saying that bitcoin could only be a good protection in a "dystopian scenario".
This bearish report is not a surprise to the crypto industry as a whole and is likely the result of a slump in anti-cryptocurrency rhetoric from the bank's top manager – Jamie Dimon – who criticizes openly Bitcoin. .
JP Morgan badysts say the value of crypto remains unproven
The bear market of 2018, which has now spread to 2019, has fueled much of the anti-crypto rhetoric that market opponents frequently hawk in interviews and opinion pieces, based on success. on prices remaining one of the most striking indicators to which the opponents of the market refer. advocating against technology.
As reported by Reuters, JP Morgan notably questioned the value of cryptocurrency, suggesting that it could be widely adopted only in a dystopian future where individuals lose confidence in traditional safe haven badets such as gold, silver and the US dollar, and are unable. use existing global payment systems.
As evidence of this, JP Morgan cites declining support for digital badets by financial institutions, stating that futures trading volumes indicate that over the last six months individual investors have made most of the purchases. .
"Even in extreme scenarios such as a recession or a financial crisis, there are more liquid and less complex instruments for making transactions, investments and hedges, partly because of the scale offered by fiat currency legal tender status, "Jan Loeys, director of JP Morgan director and badyst wrote in the report to bank customers this week.
It is important to note that a number of major corporations and institutions have in fact shown increasing interest in the markets in recent months. Institution-centric cryptocurrency platforms have garnered significant support, with companies such as Fidelity Investments and Bakkt, supported by ICE. both products in development.
Bitcoin (BTC) could fall further if bear market persists, claims badyst
The blackness of the report's authors becomes particularly apparent when one examines their price forecast for BTC.
In the report, Loeys said that should the bear market persist, BTC could fall to $ 1,260, with cost support approaching $ 2,400.
JP Morgan's leadership has long been anti-Bitcoin
The bank's CEO, Jamie Dimon, has frequently expressed this bearish sentiment. He recently told CNBC in Davos that he "took no pleasure" in seeing the fall in Bitcoin prices, and that he was still in favor of Bitcoin. underlying technology: blockchain.
Featured images of Shutterstock.
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