JPMorganDuring the past few years, JPMorgan and other top traditional financial institutions supported the crypto market, because of which the crypto market boomed in the last decade. However, there were some institutions that were skeptical about the volatility of the crypto market.
JPMorgan always supported the cause of Crypto and never doubted its potential. But as the market saw a downtrend in the past year, the strategy of JPMorgan also changed. Quite recently, it was on the news about registering its cryptocurrency wallet, and a few days the bank’s Head of Institutional Portfolio Strategy, Jared Gross, revealed that crypto asset is nonexistent for large institutional investors.
JPMorgan’s shift in stance
A month ago, JPMorgan stressed the regulation of Crypto because of the FTX collapse. After the FTX and Terra Luna crash, investors and users were more confused about the protection of their funds and investment, and JPMorgan wanted the top financial institutions to approve the crypto regulation which will provide a sense of security for their funds.
However, within a month, the company changed its stance dramatically. In a podcast with Bloomberg, Jared Gross stated that the traditional financial players were always skeptical about entering the market and only a small portion of them entered it.
They were so much cautious about the stability and reliability of the crypto market, and the events like FTX, Alameda, and Terra Luna proved them right. Gross added that observing the current crypto market sentiments, most of these investors are now happy with their decision not entering into the crypto market.
Current Market situations
The whole world is going through a period of recession, and every bigger and small business is affected. But the crypto market is the biggest hit of this financial crisis. Only a year ago, there was so much buzz around the prices of top cryptocurrencies like Bitcoin and Ether when they were circulating around $60k and $3k, respectively.
Today, both of them are down by 60% (BTC) and 70% (ETH), and according to CNBC, the crypto market has lost over $2T in 2022. Additionally, the top cryptocurrencies like BTC and ETH are dropped from their 2021 highs.
In such a devastating market, JPMorgan’s changing stance is not surprising to many because many traditional financial institutions are now thinking of withdrawing their investment from the market. Most of them are hit by the high-interest rate brought by central banks, inflation, bad stock exchange results, and high energy prices.
This financial situation has adversely affected the crypto market as well. Those institutions that did not enter the crypto market are now breathing a sigh of relief. Additionally, those who are already in the crypto market will think twice about investing more. Those who are not will make ensure not to enter the crypto market at any cost.
Future of Crypto
The recent crashes in the crypto market led JPMorgan to change its stance from being one of the top investors to questioning the reliability and stability of the market. However, this is not new to the crypto market. Many top financial institutions like Tesla and Wall Street banks have entered the market and left it after some time.
The market is here despite the fact that many of the top investing bodies left it, and it will remain the same way in the future as well. The Crypto market is a decentralized way of financing, and as long as billions of people believe in it, the market will remain no matter how many institutions leave it.
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