Revealed: JPMorgan no longer interested in the crypto market | cryptopolitan
For the past few years, JPMorgan and other large traditional financial institutions have supported the crypto market, thanks to which the crypto market has exploded over the past decade. However, some institutions were skeptical about the volatility of the crypto market.
JPMorgan has always supported the cause of crypto and never doubted its potential. But as the market has been trending down over the past year, JPMorgan’s strategy has also changed. Just recently, the registration of his cryptocurrency wallet made the news, and a few days later, the head of the bank’s institutional portfolio strategy, Jared Gross, revealed that the crypto asset is non-existent for large institutional investors.
JPMorgan’s change of position
A month ago, JPMorgan pointed out Crypto regulation because of the collapse of FTX. After the crash of FTX and Terra Luna, investors and users were more confused about protecting their funds and investments, and JPMorgan wanted major financial institutions to approve crypto regulations that will provide a sense of security for their funds.
However, within a month, the company drastically changed its position. In a podcast with Bloomberg, Jared Gross said traditional financial players were still skeptical about entering the market and only a small portion of them entered.
They were so cautious about the stability and reliability of the crypto market, and events like FTX, Alameda, and Terra Luna proved them right. Gross added that observing the current sentiments in the crypto market, most of these investors are now happy with their decision not to enter the crypto market.
Current market situations
The whole world is going through a period of recession and all large and small businesses are affected. But the crypto market is the biggest blow of this financial crisis. Just a year ago, there was so much buzz surrounding the prices of major cryptocurrencies like Bitcoin and Ether as they hovered around $60,000 and $3,000 respectively.
Today, both are down 60% (BTC) and 70% (ETH), and according to CNBCthe crypto market lost over $2 billion in 2022. Additionally, major cryptocurrencies like BTC and ETH are dropping from their 2021 highs.
In such a devastating market, JPMorgan’s shift in stance comes as no surprise to many, as many traditional financial institutions are now considering pulling their investment from the market. Most of them are affected by high interest rates imposed by central banks, inflation, poor stock market performance and high energy prices.
This financial situation has also had a negative impact on the crypto market. Institutions that did not enter the crypto market are now breathing a sigh of relief. Moreover, those who are already in the crypto market will think twice before investing further. Those who are not will make sure not to enter the crypto market at all costs.
The future of crypto
Recent crashes in the crypto market have led JPMorgan to shift 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 entered the market and left it after a while.
The market is there despite the fact that many of the major investment bodies have left it, and it will also remain the same in the future. The crypto market is a decentralized mode of finance, and as long as billions of people believe in it, the market will remain, regardless of how many institutions leave it.
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