JP Morgan: Bitcoin may survive as a speculative asset

Despite the general decline on financial markets caused by the coronavirus pandemic, Bitcoin remained stable. If the currency does not become a widely used currency, it could serve at least as asset suitable for price speculation.

JP Morgan: Bitcoin may survive as a speculative asset

This is what team of analysts from JP Morgan Chase, the largest investment bank in the world, believe. According to the bank, Bitcoin has transformed itself from unpredictable asset to a rather predictable one. Its price growth can be quite easily predicted based on price movements of traditional investment assets, such as stocks, bonds, currencies or gold. The correlation has been obvious during last few months. 

Analysts, who usually focus on securities in JP Morgan, have noticed that Bitcoin has surpassed performance of other traditional assets in last weeks, such as shares of bonds. They have also found out that liquidity on crypto markets slightly dropped compared to traditional financial markets – and this changed in following weeks. Analysts reported that Bitcoin has been more successful than stablecoins, which are connected to national currencies, and should be more stable compared to traditional cryptocurrencies. 


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