JPMorgan: Crypto Has Become Our Favorite ‘Alternative Asset Class’

JPMorgan is the largest bank in the world. Yesterday, this financial giant announced in a note that they have become increasingly interested in the crypto market. The bank even states that crypto and bitcoin (BTC) has become their ‘alternative asset class’ of choice. In addition, JPMorgan states that the price of bitcoin (BTC) is currently lower than it should be.

JPMorgan opts for crypto

According to a report by Market Insider the crypto industry has overtaken the real estate market as one of the main alternative investments for JPMorgan. Alternative asset classes are investments that don’t necessarily fit in the category of stocks or bonds.

A strategist at JPMorgan, Nikolaos Panigirtzoglou, expects that we have now completed a major capitulation of the crypto market and that the price of bitcoin could just rise sharply in the near future.

“Last month’s crypto market correction looks more like a capitulation from last January/February and going forward we see an upside for Bitcoin and crypto markets more generally.”

Because the crypto market has fallen faster than other markets, JPMorgan expects that the downward price pressure has come to an end in the meantime. That is why the crypto market has now taken over the position as the main alternative asset class at the bank. This has everything to do with the fact that the potential for upward price movement is great within the crypto market, according to JPMorgan.

“So we are replacing real estate with digital assets as our preferred alternative asset class, along with hedge funds,

Institutional Adoption

It is actually quite remarkable that JPMorgan now sees the crypto industry as a legitimate investment. Just a year ago, this sentiment was completely different. JPMorgan CEO Jamie Dimon didn’t have a good word for the world of not long ago cryptocurrencies

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This sentiment seems to have changed significantly over the past year. Although Dimon does not seem to be completely charmed personally, he does see that clients of JPMorgan have a big question to crypto investment products. Partly for this reason, the investment bank will therefore increasingly embrace the crypto sector.

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