Bitcoin, not the best way to protect against the death of the dollar? JP Morgan changes his mind as fast as he changes his shirt
We’re confused with JPM – JP Morgan has been highly praised for his strong opinions on Bitcoin in recent weeks. On Thursday 21 January, the company was once again in the Bitcoin System news with a new report, this time more pessimistic about the future of the king of cryptomoney.
JP Morgan: the oracle with divergent opinions
JP Morgan analysts recently spoke to our colleagues at Bloomberg about their outlook for Bitcoin. They say that this asset is „the most unreliable hedge in times of high market tension“. A surprising observation when one refers to Wall Street experts who say the exact opposite.
In fact, the financial bank points out that Wall Street now controls a significant portion of the outstanding BTCs. As a result, crypto would now be part of the „cyclical assets“. Cycles that should be more precise and now fed by institutional players who are very fond of Bitcoin in 2020.
Concerns supported by US politicians
Meanwhile, Janet Yellen, the candidate for secretary of treasury for President Joe Biden, called cryptomoney „a special concern“ on Tuesday. This could suggest a stance by legislators, who could take steps to „reduce their use. Their goal, of course, remains the eradication of illicit transactions.
Nevertheless, this does not prevent institutional investors from investing more, like BlackRock, which wants to bet on Bitcoin futures contracts.
In such a period of uncertainty, Bitcoin’s technical and macroeconomic analyses are to be taken with a pinch. Moreover, one must keep in mind that each company can defend its own interests.