JPMorgan one of the largest banks in Wall Street and until recently a vocal adversary of Bitcoin, has changed its tune to the number one cryptocurrency in the world.
As per Forbes Bitcoin, like many other global markets, experienced a period of extreme instability in March as world economies started to slow down and investors fled riskier assets due to the coronavirus outbreak. Yet Bitcoin remained fairly unscathed, according to a bank study titled “Cryptocurrency is taking its first stress test: Virtual gold, pyrite, or something in between?
Reported in Bloomberg “Though the [Bitcoin] bubble collapsed as dramatically as it inflated, Bitcoin has rarely traded below the cost of production, including the very disorderly conditions that prevailed in March,” said JPMorgan analysts in a report led by head of U.S. interest rate derivatives strategy Joshua Younger and cross asset research analyst Nikolaos Panigirtzoglou.
JPMorgan’s sudden 180-degree turnaround on Bitcoin and cryptocurrencies has taken the Bitcoin and cryptocurrency community off surprise. The Bitcoin price, currently floating just under $10,000 per Bitcoin, has reached about 30 percent since the start of the year trading around $7000, following the failure of the coronavirus and the closely watched third supply shortage of Bitcoin or Bitcoin halving effect.
Featured Image: Monica Volpin