Cryptocurrency
JPMorgan Says Bitcoin Crash Survival Shows It Has Staying Power
As reported by Bloomberg, “If Bitcoin were a student, you could think of it as maybe having entered middle school by now given its age. Maybe, also, it just took its first test — and according to JPMorgan Chase & Co., it got ‘mostly positive’ results. “In March, Bitcoin — like many other areas of the […]
As reported by Bloomberg, “If Bitcoin were a student, you could think of it as maybe having entered middle school by now given its age. Maybe, also, it just took its first test — and according to JPMorgan Chase & Co., it got ‘mostly positive’ results.
“In March, Bitcoin — like many other areas of the market — underwent a stretch of severe disruption as world economies started to shut down and investors fled riskier assets due to the coronavirus outbreak. But Bitcoin emerged relatively unscathed, according to a report from the bank titled ‘Cryptocurrency takes its first stress test: Digital gold, pyrite, or something in between?’
“That cryptocurrencies largely survived the madness of March suggests ‘longevity as an asset class,’ wrote strategists at the bank led by Joshua Younger and Nikolaos Panigirtzoglou. But, they say, ‘price action points to their continued use more as a vehicle for speculation than medium of exchange or store of value.’
“Instead, Bitcoin appears to have been correlated to riskier assets like equities, the JPMorgan strategists said…”